T OYOTA N ORTH A MERICA E NVIRONMENTAL R EPORT
T OYOTA
TOYOTA NORTH AMERICA
2003 ENVIRONMENTAL REPORT
Printed on recycled paper,
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©2003
00325-ENV03-NAER
T OYOTA N O R T H A M E R I C A E N V I R O N M E N TA L R E P O R T
CONTENTS
A Message from Our Leaders .........................................................................................................................................................................page 2
Corporate Profile ..................................................................................................................................................................................................page 4
Environmental Management .........................................................................................................................................................................page 10
Life Cycle I: Development and Design .......................................................................................................................................................page 22
Life Cycle II: Manufacturing ............................................................................................................................................................................page 32
Life Cycle III: Sales and Distribution ...........................................................................................................................................................page 42
Life Cycle IV: Recycling End-of-Life Vehicles ..........................................................................................................................................page 50
Stakeholders ...........................................................................................................................................................................................................page 52
Information ..............................................................................................................................................................................................................page 57
SCOPE OF THIS REPORT
The period covered in this North American Environmental Report is fiscal year 2003 (April 1, 2002 through March 31,
2003), and product model year 2003. If data are presented with different dates, this is clearly indicated. This report was
published in November 2003.
This report discusses the environmental aspects of our products and processes, outlines environmental action plans
to address them, and includes progress updates against those plans. We have structured this report to accord with
the life cycle of our business, from design through manufacture and sales and distribution to end-of-life management.
This year, we have broadened the scope of our report: 1) For the first time, we’ve expanded reporting on activity across
the North American region — the United States, Canada and Mexico; and 2) we have published in hard copy and on
the Web an English version of this report (using United States spelling), as well as electronically in French and Spanish.
In the United States, please go to www.toyota.com/environment or www.toyota.com. In Canada, please go to
www.toyota.ca. A list of supplementary Web sites is provided in the back. A reader feedback form is provided on the
Web and in this hard copy version. We listened to your comments and suggestions about last year’s report, and used
them to improve this report. We would appreciate hearing from you again.
Cover: Toyota’s all new 2004 Prius hybrid passenger car, second-generation model of the world’s first mass-produced gasoline-electric automobile.
The new model is bigger, more fuel efficient, more powerful and offers faster acceleration than its award-winning predecessor.
Main: Team Member Jamie Laking gives the final touch to a new Toyota Matrix in the Paint Repair shop at Toyota Motor Manufacturing Canada, Inc.,
Cambridge, Ontario.
Inset: A new 2004 Sienna.
page one
T OYOTA N O R T H A M E R I C A E N V I R O N M E N TA L R E P O R T
CONTENTS
A Message from Our Leaders .........................................................................................................................................................................page 2
Corporate Profile ..................................................................................................................................................................................................page 4
Environmental Management .........................................................................................................................................................................page 10
Life Cycle I: Development and Design .......................................................................................................................................................page 22
Life Cycle II: Manufacturing ............................................................................................................................................................................page 32
Life Cycle III: Sales and Distribution ...........................................................................................................................................................page 42
Life Cycle IV: Recycling End-of-Life Vehicles ..........................................................................................................................................page 50
Stakeholders ...........................................................................................................................................................................................................page 52
Information ..............................................................................................................................................................................................................page 57
SCOPE OF THIS REPORT
The period covered in this North American Environmental Report is fiscal year 2003 (April 1, 2002 through March 31,
2003), and product model year 2003. If data are presented with different dates, this is clearly indicated. This report was
published in November 2003.
This report discusses the environmental aspects of our products and processes, outlines environmental action plans
to address them, and includes progress updates against those plans. We have structured this report to accord with
the life cycle of our business, from design through manufacture and sales and distribution to end-of-life management.
This year, we have broadened the scope of our report: 1) For the first time, we’ve expanded reporting on activity across
the North American region — the United States, Canada and Mexico; and 2) we have published in hard copy and on
the Web an English version of this report (using United States spelling), as well as electronically in French and Spanish.
In the United States, please go to www.toyota.com/environment or www.toyota.com. In Canada, please go to
www.toyota.ca. A list of supplementary Web sites is provided in the back. A reader feedback form is provided on the
Web and in this hard copy version. We listened to your comments and suggestions about last year’s report, and used
them to improve this report. We would appreciate hearing from you again.
Cover: Toyota’s all new 2004 Prius hybrid passenger car, second-generation model of the world’s first mass-produced gasoline-electric automobile.
The new model is bigger, more fuel efficient, more powerful and offers faster acceleration than its award-winning predecessor.
Main: Team Member Jamie Laking gives the final touch to a new Toyota Matrix in the Paint Repair shop at Toyota Motor Manufacturing Canada, Inc.,
Cambridge, Ontario.
Inset: A new 2004 Sienna.
page one
A MESSAGE FROM OUR LEADERS
DEAR READER
We are pleased to present our third annual Environmental
Performance Report for Toyota North America. This year
marks two significant advances in this report. For the first
time, we’ve consolidated our North American activities
into a single report covering the United States, Canada and
Mexico. In addition, we have published the report in three
languages — English, French (the Web only) and Spanish
(the Web only). Reaching out in this way is a natural
extension of Toyota’s Guiding Principles, which direct us to
“respect the culture and customs of every nation.” We hope
that more people than ever will enjoy access to the
information contained in this report and develop a better
understanding of Toyota and our continuing efforts to
reconcile the automobile with society.
This report outlines our progress against our environmental
goals during 2003, and it provides many new goals we’ve
set for the future. Here are some key highlights from each
stage of our business:
DESIGN AND DEVELOPMENT
For the 2003 model year, the fuel efficiency of our products
once again outperformed the industry as a whole in both
the United States and Canada. Federal government agencies
recognized four different Toyota models for their classleading fuel efficiency. This year also marked a milestone in
Toyota’s development of advanced technology vehicles as
we introduced the first fuel cell vehicle lease program
in California, and we introduced the all-new, larger and
more powerful Toyota Prius, further cementing both our
commitment to and leadership in hybrid technology.
MANUFACTURING
We continued excellent progress in our key environmental
performance areas, achieving a 25 percent per unit reduction
in landfill waste disposal and a 12 percent per unit reduction
in water usage. Additionally, due to our substantial progress
towards meeting some of our existing targets, we have
developed new, more challenging five-year (FY 2006) targets
for air emissions and landfill waste.
SALES AND DISTRIBUTION
We are pleased to report that as of June 2003, Toyota’s
cumulative global sales of the Prius topped 120,000 units,
with 46 percent of those sales in North America. We are also
making strides in working to reduce the impact of our sales
and distribution business itself. On April 22, 2003, the new
South Campus expansion to our U.S. sales and distribution
headquarters in Torrance, California became the largest
project to date to receive the United States Green Building
Council’s Gold LEED™ award — LEED Stands for
Leadership in Energy and Environmental Design.
END-OF-LIFE/RECYCLING
Toyota issued its “Toyota Recycle Vision,” a set of guidelines
for Toyota’s global recycling activity, which renews our
commitment to minimizing the environmental impact
of our products at the end of their useful life. We also
launched two new products this year, the 2004 Sienna minivan
and Camry Solara coupe, which employ alternative materials
to selected Substances of Concern that were used in prior
generations of those vehicles.
STAKEHOLDERS
Toyota is committed to making positive contributions to
society through partnerships with organizations dedicated
to preserving the environment. For the fourth consecutive
year, Toyota was the title sponsor of National Public Lands
Day, the largest one-day volunteer cleanup of our nation's
parks. We also sponsored the first ever Canadian Environmental
Awards, supported tree-planting initiatives through The
Dennis C. Cuneo, Senior
Vice President, Toyota Motor
Manufacturing, North America, Inc.
Atsushi “Art” Niimi, President and
Chief Executive Officer, Toyota Motor
Manufacturing, North America, Inc.
Yukitoshi Funo, President and
Chief Executive Officer,
Toyota Motor Sales, U.S.A., Inc.
Stephen Beatty, Managing Director
Toyota Canada Inc.
National Arbor Day Foundation in the United States, and
the planting of indigenous species through Evergreen in
Canada. Our North American facilities participated in these
and other environmental activities in their local communities.
Over the past decade, the auto industry has become truly
global. Consolidation has served to speed the development
of technology while providing personal mobility to hundreds
of millions of people around the world. The potential for
greater mobilization in developing nations will provide
further opportunity for continued growth. If we take
substantial and aggressive action to manage this growth in
a beneficial and sustainable way, working with governments,
communities, environmental groups, customers, suppliers,
shareholders, our associates and the public, the automobile
will continue to benefit people worldwide.
Toshiaki “Tag” Taguchi, President
and Chief Executive Officer,
Toyota Motor North America, Inc.
James R. Olson, Senior Vice President,
Toyota Motor North America, Inc.
James E. Press, Executive Vice President
and Chief Operating Officer,
Toyota Motor Sales, U.S.A., Inc.
Kenji Tomikawa, President
and Chief Executive Officer,
Toyota Canada Inc.
Tadashi “George” Yamashina, President,
Toyota Technical Center, U.S.A., Inc.
David R. Baxter, Vice President,
Toyota Technical Center, U.S.A., Inc.
The Toyota Leadership, from left to right: Dennis Cuneo, Art Niimi, Tag Taguchi,
Jim Olson, Yukitoshi Funo, Jim Press, Kenji Tomikawa, Stephen Beatty, George Yamashina and Dave Baxter.
page two
TOYOTA N ORTH A MERICA
E NVIRONMENTAL R EPORT 2002
page three
A MESSAGE FROM OUR LEADERS
DEAR READER
We are pleased to present our third annual Environmental
Performance Report for Toyota North America. This year
marks two significant advances in this report. For the first
time, we’ve consolidated our North American activities
into a single report covering the United States, Canada and
Mexico. In addition, we have published the report in three
languages — English, French (the Web only) and Spanish
(the Web only). Reaching out in this way is a natural
extension of Toyota’s Guiding Principles, which direct us to
“respect the culture and customs of every nation.” We hope
that more people than ever will enjoy access to the
information contained in this report and develop a better
understanding of Toyota and our continuing efforts to
reconcile the automobile with society.
This report outlines our progress against our environmental
goals during 2003, and it provides many new goals we’ve
set for the future. Here are some key highlights from each
stage of our business:
DESIGN AND DEVELOPMENT
For the 2003 model year, the fuel efficiency of our products
once again outperformed the industry as a whole in both
the United States and Canada. Federal government agencies
recognized four different Toyota models for their classleading fuel efficiency. This year also marked a milestone in
Toyota’s development of advanced technology vehicles as
we introduced the first fuel cell vehicle lease program
in California, and we introduced the all-new, larger and
more powerful Toyota Prius, further cementing both our
commitment to and leadership in hybrid technology.
MANUFACTURING
We continued excellent progress in our key environmental
performance areas, achieving a 25 percent per unit reduction
in landfill waste disposal and a 12 percent per unit reduction
in water usage. Additionally, due to our substantial progress
towards meeting some of our existing targets, we have
developed new, more challenging five-year (FY 2006) targets
for air emissions and landfill waste.
SALES AND DISTRIBUTION
We are pleased to report that as of June 2003, Toyota’s
cumulative global sales of the Prius topped 120,000 units,
with 46 percent of those sales in North America. We are also
making strides in working to reduce the impact of our sales
and distribution business itself. On April 22, 2003, the new
South Campus expansion to our U.S. sales and distribution
headquarters in Torrance, California became the largest
project to date to receive the United States Green Building
Council’s Gold LEED™ award — LEED Stands for
Leadership in Energy and Environmental Design.
END-OF-LIFE/RECYCLING
Toyota issued its “Toyota Recycle Vision,” a set of guidelines
for Toyota’s global recycling activity, which renews our
commitment to minimizing the environmental impact
of our products at the end of their useful life. We also
launched two new products this year, the 2004 Sienna minivan
and Camry Solara coupe, which employ alternative materials
to selected Substances of Concern that were used in prior
generations of those vehicles.
STAKEHOLDERS
Toyota is committed to making positive contributions to
society through partnerships with organizations dedicated
to preserving the environment. For the fourth consecutive
year, Toyota was the title sponsor of National Public Lands
Day, the largest one-day volunteer cleanup of our nation's
parks. We also sponsored the first ever Canadian Environmental
Awards, supported tree-planting initiatives through The
Dennis C. Cuneo, Senior
Vice President, Toyota Motor
Manufacturing, North America, Inc.
Atsushi “Art” Niimi, President and
Chief Executive Officer, Toyota Motor
Manufacturing, North America, Inc.
Yukitoshi Funo, President and
Chief Executive Officer,
Toyota Motor Sales, U.S.A., Inc.
Stephen Beatty, Managing Director
Toyota Canada Inc.
National Arbor Day Foundation in the United States, and
the planting of indigenous species through Evergreen in
Canada. Our North American facilities participated in these
and other environmental activities in their local communities.
Over the past decade, the auto industry has become truly
global. Consolidation has served to speed the development
of technology while providing personal mobility to hundreds
of millions of people around the world. The potential for
greater mobilization in developing nations will provide
further opportunity for continued growth. If we take
substantial and aggressive action to manage this growth in
a beneficial and sustainable way, working with governments,
communities, environmental groups, customers, suppliers,
shareholders, our associates and the public, the automobile
will continue to benefit people worldwide.
Toshiaki “Tag” Taguchi, President
and Chief Executive Officer,
Toyota Motor North America, Inc.
James R. Olson, Senior Vice President,
Toyota Motor North America, Inc.
James E. Press, Executive Vice President
and Chief Operating Officer,
Toyota Motor Sales, U.S.A., Inc.
Kenji Tomikawa, President
and Chief Executive Officer,
Toyota Canada Inc.
Tadashi “George” Yamashina, President,
Toyota Technical Center, U.S.A., Inc.
David R. Baxter, Vice President,
Toyota Technical Center, U.S.A., Inc.
The Toyota Leadership, from left to right: Dennis Cuneo, Art Niimi, Tag Taguchi,
Jim Olson, Yukitoshi Funo, Jim Press, Kenji Tomikawa, Stephen Beatty, George Yamashina and Dave Baxter.
page two
TOYOTA N ORTH A MERICA
E NVIRONMENTAL R EPORT 2002
page three
C ORPORATE P ROFILE
“Automakers have both opportunity and
obligation to take substantial action to develop
technologies that will protect the earth.”
INTRODUCTION
— Toshiaki “Tag” Taguchi, President and
Chief Executive Officer, Toyota Motor North America, Inc.
Toyota is the world’s third-largest automotive
manufacturer and the tenth-largest company in the
world. In North America, we are the fourth-largest
automaker, building and selling vehicles under the
Toyota, Lexus and Scion* brands. In 2002 our sales
exceeded 1.94 million units, the best sales performance
in our 45-year presence in the region. Cumulatively,
we have sold over 30 million vehicles in North America
during this period. For the third consecutive year, Lexus
was the best-selling luxury brand in the United States;
the Camry was the best-selling car in the United States
for the fifth time in six years.
Overall, Toyota’s North American operations impact
society, the environment and the economy. In order to
achieve long-term success in those three key areas, we
need to gain and retain the trust of all our stakeholders,
including employees, customers, shareholders, local
communities, suppliers and dealers, governmental and
non-governmental groups.
In this section, we present selected economic and operational
data and information for our readers. For more
comprehensive information about our overall operations,
please visit our Web site at: www.toyota.com/about/
operations/index.html.
*United States only
Figure A
TOYOTA BY THE NUMBERS
Direct North American Employment................................................................................................................34,394
Direct North American Payroll..........................................................................................................................$2,241,500,000
Dealer Employment...........................................................................................................................................109,107
North American Supplier Employment............................................................................................................55,000
Direct North American Investment ..................................................................................................................$13,736,800,000
Cumulative North American Production .........................................................................................................10,567,737
North American Vehicle Sales (2002) ...............................................................................................................1,940,783
U.S. Parts/Materials Purchasing (FY ending 03/02).........................................................................................$14,990,000,000
North American Toyota, Lexus Dealers ............................................................................................................1,687
Total U.S. Philanthropy (since 1991).................................................................................................................$195,721,923
Main: (left to right) Engineers Dan Neubauer, Jennifer Moore and Dan Callin confirm the design of a headlight assembly
for the 2004 Solara coupe at the Toyota Technical Center, Ann Arbor, Michigan. The Technical Center had significant
development responsibility for the new Solara, and used advanced tools like its Virtual Engineering Studio, in the
background, to speed development of the vehicle to the market.
Inset: Following testing, V-8 engines at Toyota Motor Manufacturing, Alabama, Inc., await shipment to truck plants.
page five
C ORPORATE P ROFILE
“Automakers have both opportunity and
obligation to take substantial action to develop
technologies that will protect the earth.”
INTRODUCTION
— Toshiaki “Tag” Taguchi, President and
Chief Executive Officer, Toyota Motor North America, Inc.
Toyota is the world’s third-largest automotive
manufacturer and the tenth-largest company in the
world. In North America, we are the fourth-largest
automaker, building and selling vehicles under the
Toyota, Lexus and Scion* brands. In 2002 our sales
exceeded 1.94 million units, the best sales performance
in our 45-year presence in the region. Cumulatively,
we have sold over 30 million vehicles in North America
during this period. For the third consecutive year, Lexus
was the best-selling luxury brand in the United States;
the Camry was the best-selling car in the United States
for the fifth time in six years.
Overall, Toyota’s North American operations impact
society, the environment and the economy. In order to
achieve long-term success in those three key areas, we
need to gain and retain the trust of all our stakeholders,
including employees, customers, shareholders, local
communities, suppliers and dealers, governmental and
non-governmental groups.
In this section, we present selected economic and operational
data and information for our readers. For more
comprehensive information about our overall operations,
please visit our Web site at: www.toyota.com/about/
operations/index.html.
*United States only
Figure A
TOYOTA BY THE NUMBERS
Direct North American Employment................................................................................................................34,394
Direct North American Payroll..........................................................................................................................$2,241,500,000
Dealer Employment...........................................................................................................................................109,107
North American Supplier Employment............................................................................................................55,000
Direct North American Investment ..................................................................................................................$13,736,800,000
Cumulative North American Production .........................................................................................................10,567,737
North American Vehicle Sales (2002) ...............................................................................................................1,940,783
U.S. Parts/Materials Purchasing (FY ending 03/02).........................................................................................$14,990,000,000
North American Toyota, Lexus Dealers ............................................................................................................1,687
Total U.S. Philanthropy (since 1991).................................................................................................................$195,721,923
Main: (left to right) Engineers Dan Neubauer, Jennifer Moore and Dan Callin confirm the design of a headlight assembly
for the 2004 Solara coupe at the Toyota Technical Center, Ann Arbor, Michigan. The Technical Center had significant
development responsibility for the new Solara, and used advanced tools like its Virtual Engineering Studio, in the
background, to speed development of the vehicle to the market.
Inset: Following testing, V-8 engines at Toyota Motor Manufacturing, Alabama, Inc., await shipment to truck plants.
page five
C ORPORATE P ROFILE
Phuong Nothelfer, Quality Assurance Engineer, performs a final quality check on a Tacoma manufactured
at New United Motor Manufacturing, Inc., Fremont, California.
As our employee base grows, so does our direct payroll
commitment, which is now more than $2 billion. In addition,
we have approximately 55,000 North American suppliers,
and last year we purchased nearly $15 billion of parts and
materials from them. This investment in people is paralleled
by our overall investment in new and continuing operations.
Our cumulative North American investment through
calendar year 2002 was more than $13.7 billion (see
Figure D). This commitment to regional investment
in people and operations is a hallmark of Toyota as
a global company.
Toyota’s economic and social investment in North America
has climbed steadily over the years. Last year, our North
American plants produced 1.2 million cars and trucks,
one million engines, 361,000 transmissions and many
parts and components. The growth in our North American
sales and production is shown in Figure E. At this time,
we produce about 60 percent of what we sell here.
We now build nine different Toyota cars and trucks
in North America.
$2,400
Direct
North American Payroll
40,000
Millions of U.S. Dollars
35,000
30,000
25,000
20,000
15,000
business and is grounded in the company’s core values of “respect
for people”and “continuous improvement.” Our strategy also reflects
Toyota’s 2010 Global Vision to “promote the creation of environments
featuring people from around the world with various abilities
• Never be satisfied with the status quo;
and values who are given the opportunity to experience self-
• Respect the individual, but use the power
of teamwork;
realization as individuals.” Toyota’s North American Diversity Advisory
• “Go and see” because true understanding
requires first-hand experience;
perspectives, advice and accountability to Toyota’s management
Board, a distinguished group of national leaders, brings outside
team in implementing the strategy. Visit www.toyota.com/
about/diversity/ for more information about activities to date.
• Adapt to the responsibilities of citizenship
wherever we do business.
Annual North American
Sales and Production
One example of how we adapt to local responsibilities
as citizens is in our new diversity initiative in the United
States (see sidebar).
2,000,000
Figure E
1,800,000
$2,200
Figure B
Toyota’s 21st century diversity strategy affects all aspects of our
• Hate waste and revere efficiency;
Figure C
Direct
North American Employment
DIVERSITY AT TOYOTA IN THE UNITED STATES
$2,000
$16,000,000,000
$1,800
$14,000,000,000
Direct
North American Investment
1,600,000
Figure D
1,400,000
1,200,000
$1,600
$12,000,000,000
Vehicles
Toyota’s North American operations cover three countries.
Our core business is to manufacture and import vehicles and
parts, and sell vehicles through our dealerships. In addition,
we distribute parts and vehicles throughout the region by ship,
train and truck. Our presence in North America has grown
steadily. We now directly employ more than 34,000 associates
(see Figure B), and more than 100,000 people work in Toyota
dealerships. Please see pages eight and nine for a comprehensive description of our North American operations.
Toyota’s corporate culture reaches back to its founding as
a company. Employees are expected to exercise humility
in their work, while at the same time being competitive.
Our internal corporate code expects every Toyota
employee to:
$1,400
$10,000,000,000
$1,200
1,000,000
800,000
$1,000
$8,000,000,000
$800
$6,000,000,000
600,000
$600
400,000
$4,000,000,000
10,000
$0
0
Calendar Year
200,000
0
$0
Calendar Year
2002
2001
2000
$2,000,000,000
1999
2002
2001
2000
$200
1999
2002
2001
2000
5,000
1999
$400
1999
Calendar Year
Import
page six
TOYOTA N ORTH A MERICA
E NVIRONMENTAL R EPORT 2003
2000
2001
Calendar Year
North American Production
2002
Total Sales
page seven
C ORPORATE P ROFILE
Phuong Nothelfer, Quality Assurance Engineer, performs a final quality check on a Tacoma manufactured
at New United Motor Manufacturing, Inc., Fremont, California.
As our employee base grows, so does our direct payroll
commitment, which is now more than $2 billion. In addition,
we have approximately 55,000 North American suppliers,
and last year we purchased nearly $15 billion of parts and
materials from them. This investment in people is paralleled
by our overall investment in new and continuing operations.
Our cumulative North American investment through
calendar year 2002 was more than $13.7 billion (see
Figure D). This commitment to regional investment
in people and operations is a hallmark of Toyota as
a global company.
Toyota’s economic and social investment in North America
has climbed steadily over the years. Last year, our North
American plants produced 1.2 million cars and trucks,
one million engines, 361,000 transmissions and many
parts and components. The growth in our North American
sales and production is shown in Figure E. At this time,
we produce about 60 percent of what we sell here.
We now build nine different Toyota cars and trucks
in North America.
$2,400
Direct
North American Payroll
40,000
Millions of U.S. Dollars
35,000
30,000
25,000
20,000
15,000
business and is grounded in the company’s core values of “respect
for people”and “continuous improvement.” Our strategy also reflects
Toyota’s 2010 Global Vision to “promote the creation of environments
featuring people from around the world with various abilities
• Never be satisfied with the status quo;
and values who are given the opportunity to experience self-
• Respect the individual, but use the power
of teamwork;
realization as individuals.” Toyota’s North American Diversity Advisory
• “Go and see” because true understanding
requires first-hand experience;
perspectives, advice and accountability to Toyota’s management
Board, a distinguished group of national leaders, brings outside
team in implementing the strategy. Visit www.toyota.com/
about/diversity/ for more information about activities to date.
• Adapt to the responsibilities of citizenship
wherever we do business.
Annual North American
Sales and Production
One example of how we adapt to local responsibilities
as citizens is in our new diversity initiative in the United
States (see sidebar).
2,000,000
Figure E
1,800,000
$2,200
Figure B
Toyota’s 21st century diversity strategy affects all aspects of our
• Hate waste and revere efficiency;
Figure C
Direct
North American Employment
DIVERSITY AT TOYOTA IN THE UNITED STATES
$2,000
$16,000,000,000
$1,800
$14,000,000,000
Direct
North American Investment
1,600,000
Figure D
1,400,000
1,200,000
$1,600
$12,000,000,000
Vehicles
Toyota’s North American operations cover three countries.
Our core business is to manufacture and import vehicles and
parts, and sell vehicles through our dealerships. In addition,
we distribute parts and vehicles throughout the region by ship,
train and truck. Our presence in North America has grown
steadily. We now directly employ more than 34,000 associates
(see Figure B), and more than 100,000 people work in Toyota
dealerships. Please see pages eight and nine for a comprehensive description of our North American operations.
Toyota’s corporate culture reaches back to its founding as
a company. Employees are expected to exercise humility
in their work, while at the same time being competitive.
Our internal corporate code expects every Toyota
employee to:
$1,400
$10,000,000,000
$1,200
1,000,000
800,000
$1,000
$8,000,000,000
$800
$6,000,000,000
600,000
$600
400,000
$4,000,000,000
10,000
$0
0
Calendar Year
200,000
0
$0
Calendar Year
2002
2001
2000
$2,000,000,000
1999
2002
2001
2000
$200
1999
2002
2001
2000
5,000
1999
$400
1999
Calendar Year
Import
page six
TOYOTA N ORTH A MERICA
E NVIRONMENTAL R EPORT 2003
2000
2001
Calendar Year
North American Production
2002
Total Sales
page seven
T O YO TA
N O R T H
A M E R I C A N
HOLDING COMPANY
1 Toyota Motor North America, Inc. * — Headquartered in New York, New York. Branch offices in
Washington, D.C. and Florida. Established 1996.
SALES & SERVICE
2 Toyota Motor Sales, U.S.A., Inc. * — Headquartered in Torrance, California. Regional sales offices
in California, Colorado, Illinois, Maryland, Massachusetts, Missouri, New Jersey, Ohio and Oregon.
Private distributor offices in Florida and Texas. Established 1957.
3 Lexus - Headquartered in Torrance,California.Area sales offices in California,Georgia,Illinois and New Jersey.
4 Toyota Logistics Services, Inc. * — Headquartered in Torrance, California. Operations in Arizona,
California, Illinois, Indiana, Kentucky, Michigan, New Jersey, Oregon,Tennessee and Texas.
5 North American Parts Operations — Headquartered in Torrance,California.North American parts
centers in California and Kentucky.Parts Distribution Centers located in California, Oregon, Ohio, New York,
Missouri, Illinois, Maryland and Massachusetts.Third party facilities in Florida and Texas.Established 1993.
6 AirFlite, Inc. — Headquartered in Long Beach, California.
7 Aviation Business Development Office — Headquartered in Torrance, California.
8 Toyota Financial Services — Headquartered in Torrance, California. Customer Services Centers in
Arizona, Iowa and Maryland. Began operation in 1983.
9 TSSC, Inc. — Headquartered in Erlanger, Kentucky. Established 2002.
10 Toyota Canada Inc. * — Headquartered in Scarborough, Ontario. Zone offices in Richmond, British
Columbia; Calgary, Alberta; Scarborough, Ontario; Montreal, Quebec; and Dartmouth, Nova Scotia.
Established 1964.
11 Lexus — Offices in Scarborough, Ontario. Began operation in 1990.
12 Industrial Equipment — Offices in Scarborough, Ontario. Began operation in 1970.
13 Toyota Credit Canada Inc. — Headquartered in Markham, Ontario. Branch offices in Richmond, British
Columbia; Markham, Ontario; Montreal, Quebec; and Dartmouth, Nova Scotia. Established 1990.
14 Toyota Motor Sales de México, S.deR.L.deC.V. * — Headquartered in Mexico City, Distrito Federal.
Established 2001.
15 TMSM Servicios de México,S.A.deC.V. — Headquartered in Mexico City,Mexico.Began operation in 2002.
MANUFACTURING
16 Toyota Motor Manufacturing North America, Inc. * — Headquartered in Erlanger, Kentucky.
Established 1996.
17 TABC, Inc. * — Manufacturing plant in Long Beach, California. Established 1972.
18 New United Motor Manufacturing,Inc. * — Manufacturing plant in Fremont,California. Established 1984.
19 Toyota Motor Manufacturing, Kentucky, Inc. * — Manufacturing plant in Georgetown, Kentucky.
Established 1986.
20 Bodine Aluminum, Inc. * — Manufacturing plants in St. Louis and Troy, Missouri. Established in 1912
and purchased by Toyota in 1990.
21 Toyota Motor Manufacturing,Indiana,Inc.* — Manufacturing plant in Princeton,Indiana. Established 1996.
22 Toyota Motor Manufacturing, West Virginia, Inc. * — Manufacturing plant in Buffalo,West Virginia.
Established 1996.
23 Toyota Motor Manufacturing, Alabama, Inc. * — Manufacturing plant in Huntsville, Alabama.
Established 2001.
24 Toyota Motor Manufacturing,Texas,Inc.* — Manufacturing plant in San Antonio,Texas. Established 2003.
25 Canadian Autoparts Toyota, Inc. * — Manufacturing plant in Delta,British Columbia. Established 1985.
26 Toyota Motor Manufacturing Canada,Inc.* — Manufacturing plant in Cambridge,Ontario. Established 1986.
27 Toyota Motor Manufacturing de Baja California, S. de R.L. de C.V.* — Manufacturing plant in
Baja California,Mexico.Established 2002.
RESEARCH & DEVELOPMENT
28 Toyota Technical Center, U.S.A., Inc. * — Headquartered in Ann Arbor, Michigan. Operations in
Arizona and California. Incorporated 1977.
29 TRD, U.S.A., Inc. — Headquartered in Costa Mesa,California. Established 1979.
30 Toyota InfoTechnology Center, U.S.A., Inc. — Headquartered in Palo Alto, California. Branch office
in New York. Established 2001.
31 Cold Research Centre — Test facility located in Timmins, Ontario. Built by TCI in 1998.
DESIGN
32 Calty Design Research, Inc. — Headquartered in Newport Beach, California. Established 1973.
A F F I L I A T E S **
“We have a long history of concern for the
environment, and are actively seeking ways
to meet the growing transportation needs of
society in ways that are less harmful to our Earth.”
Wholly owned by Toyota Motor Corporation (TMC) in Japan,TMA is the holding company for Toyota’s United States
sales and manufacturing companies. Direct functions include: corporate communications; investor relations; corporate
advertising; federal government, industry and regulatory affairs; market, economic and auto industry research; and the
Toyota USA Foundation. In addition,TMA coordinates the corporate planning, diversity and business activities of all Toyota
companies in North America.
TMS,Toyota’s U.S. sales and marketing arm, oversees sales and other Toyota operations in 49 states.TMS regional offices
coordinate Toyota vehicle sales, service and parts for dealers in 10 regional areas, with two additional regions being
served by private distributors.There are 1,202 Toyota dealers located throughout the United States.
The Lexus Division directs sales and operations for 199 Lexus dealers located throughout the United States through four area offices.
TLS has six Vehicle Delivery Centers in the United States and manages Toyota and Lexus logistics operations, planning and
administration.TLS manages all North American vehicle export operations and Toyota’s in-house trucking company.TLS
manages logistics for North American-sourced parts for New United Motor Manufacturing, Inc., and for North American
parts exported for vehicle production in Japan and Australia.
NAPO was established to improve local parts sourcing and manage a parts distribution network that supplies all North
American Toyota distributors as well as U.S.Toyota and Lexus dealers. Additionally, U.S. parts are exported to parts centers
in Japan and Europe for worldwide distribution.
AirFlite is a fixed-base operation providing a full range of services to corporate and general aviation craft at
Long Beach Airport
ABDO is responsible for exploration of new business opportunities in the general aviation field, including aircraft and
power plant development.
TFS provides finance and insurance products and services to Toyota, Lexus and Toyota industrial equipment dealers and
their customers through Toyota Motor Credit Corporation and Toyota Motor Insurance Services, Inc.There are 30 dealer
sales and service offices nationwide as well as one branch office in Puerto Rico.
TSSC is a resource for companies across North America interested in the Toyota Production System (TPS) as a way to
strengthen the quality and efficiency of their production systems.
TCI oversees all divisions of Toyota’s sales, marketing, parts, service, Lexus and Industrial Equipment operations in Canada.
TCI zone offices coordinate Toyota vehicle sales, parts and services for dealers in 10 provinces and three territories.There
are 228 Toyota dealers located throughout Canada, of which 206 are exclusively Toyota, and 22 are Toyota/Lexus.
The Lexus division of TCI directs sales, parts and service operations for 27 dealers in seven provinces of Canada. Five
dealerships are exclusively Lexus, and 22 are Toyota/Lexus.
The IE division of TCI sells industrial equipment and parts to seven dealers through 15 locations in nine provinces of Canada.
TCCI provides financial services for Toyota, Lexus and Hino dealers, as well as their customers across Canada.
— Kenji Tomikawa, President and Chief
Executive Officer, Toyota Canada Inc.
Toyota Canada Inc.
Scarborough, Ontario
Toyota Motor Manufacturing Canada Inc.
Cambridge, Ontario
Canadian Autoparts Toyota, Inc.
Delta, British Columbia
Toyota Logistics Services, Inc.
Torrance, Calif.
Toyota Technical Center, USA, Inc.
Ann Arbor, Mich.
25
Toyota Motor
Manufacturing,
West Virginia, Inc.
Buffalo, W. Va.
Toyota Motor Manufacturing North America, Inc.
Erlanger, Ky.
Toyota Motor
North America, Inc.
New York, N.Y.
Toyota Motor Sales de México is responsible for sales, marketing and service operations for Toyota vehicles in Mexico.
TMSM Servicios provides finance products to Toyota dealers and their customers.
10
26
TMMNA serves as headquarters for Toyota’s growing manufacturing activities in the United States, Canada and Mexico.
TABC,Toyota’s first U.S. manufacturing plant, produces truck beds, sheet metal components, steering columns, catalytic
converters and coated catalytic substrates for Toyota’s North American manufacturing facilities and for export to Japan
and Canada. Beginning in 2004,TABC will assemble commercial trucks for Hino Motors to be sold in North America.
NUMMI, a Toyota/General Motors joint venture, manufactures the Corolla,Tacoma and Voltz (for export to Japan) for
Toyota, and the Vibe for General Motors.
TMMK,Toyota’s largest manufacturing facility outside of Japan, builds the Avalon, Camry and Sienna. In 2003,TMMK
began production of the Camry Solara as Sienna production shifts to TMMI. Four-cylinder and V6 engines and powertrain
parts are also built at TMMK.
The St. Louis plant manufactures engine brackets and carrier covers.The Troy plant manufactures cylinder heads, cylinder
blocks, intake manifolds, surge tanks and engine brackets for the Avalon, Camry, Camry Solara, Corolla and Sienna.
TMMI produces the Tundra full-size pickup and the Sequoia full-size sport utility vehicle. In 2003,TMMI began production
of the Sienna, doubling the plant’s annual capacity to 300,000.
TMMWV produces four-cylinder engines for the North American-built Corolla,V6 engines for the Avalon and Sienna,
and automatic transmissions for the Camry. Production of V6 engines and transmissions for the Lexus RX 330 began in
September 2003. At full production,TMMWV will have an annual capacity of 540,000 engines and 360,000 automatic
transmissions.
TMMAL machines and assembles V8 engines for the Tundra. At full production,TMMAL has an annual capacity of 120,000
engines. It is the first Toyota plant outside of Japan to build a V8 engine.
In 2006,TMMTX will begin production of the Tundra full-size pickup.The plant’s annual capacity will be 150,000 trucks.
CAPTIN manufactures aluminum alloy wheels for the North American and Japanese markets.
TMMC builds the Corolla, Camry Solara and Matrix for North America. Four-cylinder 1.8-liter engines for the Corolla are
also assembled at TMMC. Production of the Lexus RX 330 began in September 2003 as Camry Solara production shifts
to TMMK.
In 2004,TMMBC will begin production of the Tacoma truck beds for NUMMI. Approximately one year later,TMMBC will
begin assembly of Tacoma pickup trucks.The plant will have an annual capacity to build approximately 30,000 trucks and
170,000 truck beds.
1
18
20
Calty provides innovative design solutions for Toyota and Lexus product development. Calty also supports North American
production with color, trim and wheel design. Calty has contributed exterior styling concepts for the Tacoma, Camry
Solara, Prius, 2000 Celica, 2000 Avalon, 2001 RAV4, Matrix and Lexus SC 400.
16
19
21
Toyota Motor
North America, Inc.
Washington, D.C.
22
20
17
28 2
4
28
23
27
Toyota Motor Manufacturing,
Kentucky, Inc.
Georgetown, Ky.
Toyota Motor Manufacturing
de Baja California
S. de R.L. de C.V.,
Baja California, Mexico (2004)
24
Toyota Motor Manufacturing,
Alabama, Inc.
Huntsville, Ala. (2003)
Toyota Motor Sales, U.S.A., Inc.
Torrance, Calif.
Toyota Technical Center, U.S.A., Inc.
Gardens/Torrance, Calif.
Toyota Technical Center, U.S.A., Inc.
Wittman, Ariz.
TABC, Inc.
Long Beach, Calif.
New United Motor Manufacturing, Inc.
Fremont, Calif.
Toyota Motor Manufacturing, Indiana, Inc.
Princeton, Ind.
Bodine Aluminum, Inc.
St. Louis / Troy, Mo.
TTC is responsible for Toyota’s North American engineering design, development and research.
TRD designs, assembles and develops engines to support Toyota’s racing programs, and coordinates the development and
sale of high-performance aftermarket parts for Toyota cars and trucks.
ITC conducts research, development and evaluation of advanced, world-class information technologies, hardware
and software.
Toyota’s first cold weather facility outside Japan is used primarily to test the operation of Toyota products in subzero conditions.
1
28
14
Toyota Motor Sales de México, S.deR.L.deC.V.
Mexico City, Distrito Federal
Toyota Motor Manufacturing, Texas, Inc.
San Antonio, Tex.
* Companies covered in this report.
** Toyota North American Affiliate information is updated periodically. Please see www.toyota.com/
about/operations/na-affiliates/index.html for the most current information.
E NVIRONMENTAL R EPORT 2003
page nine
T O YO TA
N O R T H
A M E R I C A N
HOLDING COMPANY
1 Toyota Motor North America, Inc. * — Headquartered in New York, New York. Branch offices in
Washington, D.C. and Florida. Established 1996.
SALES & SERVICE
2 Toyota Motor Sales, U.S.A., Inc. * — Headquartered in Torrance, California. Regional sales offices
in California, Colorado, Illinois, Maryland, Massachusetts, Missouri, New Jersey, Ohio and Oregon.
Private distributor offices in Florida and Texas. Established 1957.
3 Lexus - Headquartered in Torrance,California.Area sales offices in California,Georgia,Illinois and New Jersey.
4 Toyota Logistics Services, Inc. * — Headquartered in Torrance, California. Operations in Arizona,
California, Illinois, Indiana, Kentucky, Michigan, New Jersey, Oregon,Tennessee and Texas.
5 North American Parts Operations — Headquartered in Torrance,California.North American parts
centers in California and Kentucky.Parts Distribution Centers located in California, Oregon, Ohio, New York,
Missouri, Illinois, Maryland and Massachusetts.Third party facilities in Florida and Texas.Established 1993.
6 AirFlite, Inc. — Headquartered in Long Beach, California.
7 Aviation Business Development Office — Headquartered in Torrance, California.
8 Toyota Financial Services — Headquartered in Torrance, California. Customer Services Centers in
Arizona, Iowa and Maryland. Began operation in 1983.
9 TSSC, Inc. — Headquartered in Erlanger, Kentucky. Established 2002.
10 Toyota Canada Inc. * — Headquartered in Scarborough, Ontario. Zone offices in Richmond, British
Columbia; Calgary, Alberta; Scarborough, Ontario; Montreal, Quebec; and Dartmouth, Nova Scotia.
Established 1964.
11 Lexus — Offices in Scarborough, Ontario. Began operation in 1990.
12 Industrial Equipment — Offices in Scarborough, Ontario. Began operation in 1970.
13 Toyota Credit Canada Inc. — Headquartered in Markham, Ontario. Branch offices in Richmond, British
Columbia; Markham, Ontario; Montreal, Quebec; and Dartmouth, Nova Scotia. Established 1990.
14 Toyota Motor Sales de México, S.deR.L.deC.V. * — Headquartered in Mexico City, Distrito Federal.
Established 2001.
15 TMSM Servicios de México,S.A.deC.V. — Headquartered in Mexico City,Mexico.Began operation in 2002.
MANUFACTURING
16 Toyota Motor Manufacturing North America, Inc. * — Headquartered in Erlanger, Kentucky.
Established 1996.
17 TABC, Inc. * — Manufacturing plant in Long Beach, California. Established 1972.
18 New United Motor Manufacturing,Inc. * — Manufacturing plant in Fremont,California. Established 1984.
19 Toyota Motor Manufacturing, Kentucky, Inc. * — Manufacturing plant in Georgetown, Kentucky.
Established 1986.
20 Bodine Aluminum, Inc. * — Manufacturing plants in St. Louis and Troy, Missouri. Established in 1912
and purchased by Toyota in 1990.
21 Toyota Motor Manufacturing,Indiana,Inc.* — Manufacturing plant in Princeton,Indiana. Established 1996.
22 Toyota Motor Manufacturing, West Virginia, Inc. * — Manufacturing plant in Buffalo,West Virginia.
Established 1996.
23 Toyota Motor Manufacturing, Alabama, Inc. * — Manufacturing plant in Huntsville, Alabama.
Established 2001.
24 Toyota Motor Manufacturing,Texas,Inc.* — Manufacturing plant in San Antonio,Texas. Established 2003.
25 Canadian Autoparts Toyota, Inc. * — Manufacturing plant in Delta,British Columbia. Established 1985.
26 Toyota Motor Manufacturing Canada,Inc.* — Manufacturing plant in Cambridge,Ontario. Established 1986.
27 Toyota Motor Manufacturing de Baja California, S. de R.L. de C.V.* — Manufacturing plant in
Baja California,Mexico.Established 2002.
RESEARCH & DEVELOPMENT
28 Toyota Technical Center, U.S.A., Inc. * — Headquartered in Ann Arbor, Michigan. Operations in
Arizona and California. Incorporated 1977.
29 TRD, U.S.A., Inc. — Headquartered in Costa Mesa,California. Established 1979.
30 Toyota InfoTechnology Center, U.S.A., Inc. — Headquartered in Palo Alto, California. Branch office
in New York. Established 2001.
31 Cold Research Centre — Test facility located in Timmins, Ontario. Built by TCI in 1998.
DESIGN
32 Calty Design Research, Inc. — Headquartered in Newport Beach, California. Established 1973.
A F F I L I A T E S **
“We have a long history of concern for the
environment, and are actively seeking ways
to meet the growing transportation needs of
society in ways that are less harmful to our Earth.”
Wholly owned by Toyota Motor Corporation (TMC) in Japan,TMA is the holding company for Toyota’s United States
sales and manufacturing companies. Direct functions include: corporate communications; investor relations; corporate
advertising; federal government, industry and regulatory affairs; market, economic and auto industry research; and the
Toyota USA Foundation. In addition,TMA coordinates the corporate planning, diversity and business activities of all Toyota
companies in North America.
TMS,Toyota’s U.S. sales and marketing arm, oversees sales and other Toyota operations in 49 states.TMS regional offices
coordinate Toyota vehicle sales, service and parts for dealers in 10 regional areas, with two additional regions being
served by private distributors.There are 1,202 Toyota dealers located throughout the United States.
The Lexus Division directs sales and operations for 199 Lexus dealers located throughout the United States through four area offices.
TLS has six Vehicle Delivery Centers in the United States and manages Toyota and Lexus logistics operations, planning and
administration.TLS manages all North American vehicle export operations and Toyota’s in-house trucking company.TLS
manages logistics for North American-sourced parts for New United Motor Manufacturing, Inc., and for North American
parts exported for vehicle production in Japan and Australia.
NAPO was established to improve local parts sourcing and manage a parts distribution network that supplies all North
American Toyota distributors as well as U.S.Toyota and Lexus dealers. Additionally, U.S. parts are exported to parts centers
in Japan and Europe for worldwide distribution.
AirFlite is a fixed-base operation providing a full range of services to corporate and general aviation craft at
Long Beach Airport
ABDO is responsible for exploration of new business opportunities in the general aviation field, including aircraft and
power plant development.
TFS provides finance and insurance products and services to Toyota, Lexus and Toyota industrial equipment dealers and
their customers through Toyota Motor Credit Corporation and Toyota Motor Insurance Services, Inc.There are 30 dealer
sales and service offices nationwide as well as one branch office in Puerto Rico.
TSSC is a resource for companies across North America interested in the Toyota Production System (TPS) as a way to
strengthen the quality and efficiency of their production systems.
TCI oversees all divisions of Toyota’s sales, marketing, parts, service, Lexus and Industrial Equipment operations in Canada.
TCI zone offices coordinate Toyota vehicle sales, parts and services for dealers in 10 provinces and three territories.There
are 228 Toyota dealers located throughout Canada, of which 206 are exclusively Toyota, and 22 are Toyota/Lexus.
The Lexus division of TCI directs sales, parts and service operations for 27 dealers in seven provinces of Canada. Five
dealerships are exclusively Lexus, and 22 are Toyota/Lexus.
The IE division of TCI sells industrial equipment and parts to seven dealers through 15 locations in nine provinces of Canada.
TCCI provides financial services for Toyota, Lexus and Hino dealers, as well as their customers across Canada.
— Kenji Tomikawa, President and Chief
Executive Officer, Toyota Canada Inc.
Toyota Canada Inc.
Scarborough, Ontario
Toyota Motor Manufacturing Canada Inc.
Cambridge, Ontario
Canadian Autoparts Toyota, Inc.
Delta, British Columbia
Toyota Logistics Services, Inc.
Torrance, Calif.
Toyota Technical Center, USA, Inc.
Ann Arbor, Mich.
25
Toyota Motor
Manufacturing,
West Virginia, Inc.
Buffalo, W. Va.
Toyota Motor Manufacturing North America, Inc.
Erlanger, Ky.
Toyota Motor
North America, Inc.
New York, N.Y.
Toyota Motor Sales de México is responsible for sales, marketing and service operations for Toyota vehicles in Mexico.
TMSM Servicios provides finance products to Toyota dealers and their customers.
10
26
TMMNA serves as headquarters for Toyota’s growing manufacturing activities in the United States, Canada and Mexico.
TABC,Toyota’s first U.S. manufacturing plant, produces truck beds, sheet metal components, steering columns, catalytic
converters and coated catalytic substrates for Toyota’s North American manufacturing facilities and for export to Japan
and Canada. Beginning in 2004,TABC will assemble commercial trucks for Hino Motors to be sold in North America.
NUMMI, a Toyota/General Motors joint venture, manufactures the Corolla,Tacoma and Voltz (for export to Japan) for
Toyota, and the Vibe for General Motors.
TMMK,Toyota’s largest manufacturing facility outside of Japan, builds the Avalon, Camry and Sienna. In 2003,TMMK
began production of the Camry Solara as Sienna production shifts to TMMI. Four-cylinder and V6 engines and powertrain
parts are also built at TMMK.
The St. Louis plant manufactures engine brackets and carrier covers.The Troy plant manufactures cylinder heads, cylinder
blocks, intake manifolds, surge tanks and engine brackets for the Avalon, Camry, Camry Solara, Corolla and Sienna.
TMMI produces the Tundra full-size pickup and the Sequoia full-size sport utility vehicle. In 2003,TMMI began production
of the Sienna, doubling the plant’s annual capacity to 300,000.
TMMWV produces four-cylinder engines for the North American-built Corolla,V6 engines for the Avalon and Sienna,
and automatic transmissions for the Camry. Production of V6 engines and transmissions for the Lexus RX 330 began in
September 2003. At full production,TMMWV will have an annual capacity of 540,000 engines and 360,000 automatic
transmissions.
TMMAL machines and assembles V8 engines for the Tundra. At full production,TMMAL has an annual capacity of 120,000
engines. It is the first Toyota plant outside of Japan to build a V8 engine.
In 2006,TMMTX will begin production of the Tundra full-size pickup.The plant’s annual capacity will be 150,000 trucks.
CAPTIN manufactures aluminum alloy wheels for the North American and Japanese markets.
TMMC builds the Corolla, Camry Solara and Matrix for North America. Four-cylinder 1.8-liter engines for the Corolla are
also assembled at TMMC. Production of the Lexus RX 330 began in September 2003 as Camry Solara production shifts
to TMMK.
In 2004,TMMBC will begin production of the Tacoma truck beds for NUMMI. Approximately one year later,TMMBC will
begin assembly of Tacoma pickup trucks.The plant will have an annual capacity to build approximately 30,000 trucks and
170,000 truck beds.
1
18
20
Calty provides innovative design solutions for Toyota and Lexus product development. Calty also supports North American
production with color, trim and wheel design. Calty has contributed exterior styling concepts for the Tacoma, Camry
Solara, Prius, 2000 Celica, 2000 Avalon, 2001 RAV4, Matrix and Lexus SC 400.
16
19
21
Toyota Motor
North America, Inc.
Washington, D.C.
22
20
17
28 2
4
28
23
27
Toyota Motor Manufacturing,
Kentucky, Inc.
Georgetown, Ky.
Toyota Motor Manufacturing
de Baja California
S. de R.L. de C.V.,
Baja California, Mexico (2004)
24
Toyota Motor Manufacturing,
Alabama, Inc.
Huntsville, Ala. (2003)
Toyota Motor Sales, U.S.A., Inc.
Torrance, Calif.
Toyota Technical Center, U.S.A., Inc.
Gardens/Torrance, Calif.
Toyota Technical Center, U.S.A., Inc.
Wittman, Ariz.
TABC, Inc.
Long Beach, Calif.
New United Motor Manufacturing, Inc.
Fremont, Calif.
Toyota Motor Manufacturing, Indiana, Inc.
Princeton, Ind.
Bodine Aluminum, Inc.
St. Louis / Troy, Mo.
TTC is responsible for Toyota’s North American engineering design, development and research.
TRD designs, assembles and develops engines to support Toyota’s racing programs, and coordinates the development and
sale of high-performance aftermarket parts for Toyota cars and trucks.
ITC conducts research, development and evaluation of advanced, world-class information technologies, hardware
and software.
Toyota’s first cold weather facility outside Japan is used primarily to test the operation of Toyota products in subzero conditions.
1
28
14
Toyota Motor Sales de México, S.deR.L.deC.V.
Mexico City, Distrito Federal
Toyota Motor Manufacturing, Texas, Inc.
San Antonio, Tex.
* Companies covered in this report.
** Toyota North American Affiliate information is updated periodically. Please see www.toyota.com/
about/operations/na-affiliates/index.html for the most current information.
E NVIRONMENTAL R EPORT 2003
page nine
E NVIRONMENTAL M ANAGEMENT
MANAGEMENT
“The expansion of automobile use will have a
significant impact on society. The companies
that will succeed will be those that promote
environmental technology. This is one of
Toyota’s key social responsibilities.”
— Fujio Cho, President, Toyota Motor Corporation,
Chairman, Toyota Environment Committee 2003
The automobile provides the mobility that is a principal
means for people to achieve social and economic advancement. Currently, there are approximately 740 million
automobiles in use worldwide. Yet, with a current global
population of more than 6.1 billion people, we are facing
a period of potentially rapid increases in the demand for
automobiles. The business opportunity is great, but the
potential impacts on fossil fuel resources and increasing
carbon dioxide emissions are also significant. If the
automobile industry continues to meet growing demand
by simply making more cars, as we do today, it will surely
serve to exacerbate these environmental impacts. Toyota is
aware of these issues and considers environmental
preservation and environmental management to be key
business issues.
TOYOTA’S GUIDING PRINCIPLES
ADOPTED JANUARY 1992, REVISED APRIL 1997
• Honor the language and spirit of the law of every
nation and undertake open and fair corporate
activities to be a good corporate citizen around
the world.
• Respect the culture and customs of every nation
and contribute to economic and social development
through corporate activities in local communities.
• Dedicate ourselves to providing clean and safe
products and to enhancing the quality of life
everywhere through our activities.
• Create and develop advanced technologies and
provide outstanding products and services that
fulfill the needs of customers worldwide.
• Foster a corporate culture that enhances individual
creativity and teamwork value, while honoring
mutual trust and respect between labor and
management.
• Pursue growth in harmony with the global
community through innovative management.
• Work with business partners in research and
creation to achieve stable, long-term growth and
mutual benefits, while keeping ourselves open to
new partnerships.
TOYOTA’S EARTH CHARTER (APRIL 2000)
The Toyota Earth Charter, published in 1992 and updated in 2000, describes Toyota’s Basic Action
Policy and Action Guidelines regarding environmental improvements.
I. Basic Policy
1. Contribute toward a prosperous 21st century society
Aim for growth that is in harmony with the environment, and set a challenge
to achieve zero emissions throughout all areas of business activities.
2. Pursue environmental technologies
Pursue all possible environmental technologies, developing and establishing new
technologies to enable the environment and economy to coexist.
3. Take action voluntarily
Develop a voluntary improvement plan based on thorough preventive measures and
compliance with laws, that addresses environmental issues on global, national and
regional scales, while promoting continuous implementation.
4. Work in cooperation with society
Build close and cooperative relationships with a wide spectrum of individuals and
organizations involved in environmental preservation, including governments, local
municipalities and related companies and industries.
II. Action Guidelines
1. Always be concerned about the environment
Work toward achieving zero emissions at all stages, i.e., production,
utilization and disposal:
Develop and provide products with top-level environmental performance;
Pursue production activities that do not generate waste;
Implement thorough preventive measures;
Promote businesses that contribute toward environmental improvement.
2. Business partners are partners in creating a better environment
Cooperate with associated companies.
3. As a member of society
Actively participate in social actions.
Participate in creation of a recycling-based society:
Support government environmental policies;
Contribute to non-profit activities.
4. Toward better understanding
Actively disclose information and promote environmental awareness.
Main: Team members at Toyota Motor Manufacturing, Alabama, Inc., review zero waste-to-landfill documents during environmental training.
TOYOTA N ORTH A MERICA E NVIRONMENTAL R EPORT 2002
page eleven
E NVIRONMENTAL M ANAGEMENT
MANAGEMENT
“The expansion of automobile use will have a
significant impact on society. The companies
that will succeed will be those that promote
environmental technology. This is one of
Toyota’s key social responsibilities.”
— Fujio Cho, President, Toyota Motor Corporation,
Chairman, Toyota Environment Committee 2003
The automobile provides the mobility that is a principal
means for people to achieve social and economic advancement. Currently, there are approximately 740 million
automobiles in use worldwide. Yet, with a current global
population of more than 6.1 billion people, we are facing
a period of potentially rapid increases in the demand for
automobiles. The business opportunity is great, but the
potential impacts on fossil fuel resources and increasing
carbon dioxide emissions are also significant. If the
automobile industry continues to meet growing demand
by simply making more cars, as we do today, it will surely
serve to exacerbate these environmental impacts. Toyota is
aware of these issues and considers environmental
preservation and environmental management to be key
business issues.
TOYOTA’S GUIDING PRINCIPLES
ADOPTED JANUARY 1992, REVISED APRIL 1997
• Honor the language and spirit of the law of every
nation and undertake open and fair corporate
activities to be a good corporate citizen around
the world.
• Respect the culture and customs of every nation
and contribute to economic and social development
through corporate activities in local communities.
• Dedicate ourselves to providing clean and safe
products and to enhancing the quality of life
everywhere through our activities.
• Create and develop advanced technologies and
provide outstanding products and services that
fulfill the needs of customers worldwide.
• Foster a corporate culture that enhances individual
creativity and teamwork value, while honoring
mutual trust and respect between labor and
management.
• Pursue growth in harmony with the global
community through innovative management.
• Work with business partners in research and
creation to achieve stable, long-term growth and
mutual benefits, while keeping ourselves open to
new partnerships.
TOYOTA’S EARTH CHARTER (APRIL 2000)
The Toyota Earth Charter, published in 1992 and updated in 2000, describes Toyota’s Basic Action
Policy and Action Guidelines regarding environmental improvements.
I. Basic Policy
1. Contribute toward a prosperous 21st century society
Aim for growth that is in harmony with the environment, and set a challenge
to achieve zero emissions throughout all areas of business activities.
2. Pursue environmental technologies
Pursue all possible environmental technologies, developing and establishing new
technologies to enable the environment and economy to coexist.
3. Take action voluntarily
Develop a voluntary improvement plan based on thorough preventive measures and
compliance with laws, that addresses environmental issues on global, national and
regional scales, while promoting continuous implementation.
4. Work in cooperation with society
Build close and cooperative relationships with a wide spectrum of individuals and
organizations involved in environmental preservation, including governments, local
municipalities and related companies and industries.
II. Action Guidelines
1. Always be concerned about the environment
Work toward achieving zero emissions at all stages, i.e., production,
utilization and disposal:
Develop and provide products with top-level environmental performance;
Pursue production activities that do not generate waste;
Implement thorough preventive measures;
Promote businesses that contribute toward environmental improvement.
2. Business partners are partners in creating a better environment
Cooperate with associated companies.
3. As a member of society
Actively participate in social actions.
Participate in creation of a recycling-based society:
Support government environmental policies;
Contribute to non-profit activities.
4. Toward better understanding
Actively disclose information and promote environmental awareness.
Main: Team members at Toyota Motor Manufacturing, Alabama, Inc., review zero waste-to-landfill documents during environmental training.
TOYOTA N ORTH A MERICA E NVIRONMENTAL R EPORT 2002
page eleven
E NVIRONMENTAL M ANAGEMENT
Environmental Coordination and Management in North America
Relationship Between Automobiles and the Environment
Figure G
Technical Subcommittees
Toyota Technical Center,
U.S.A., Inc.
Research and Analysis, Proposals
• Air Pollution, Acid Rain, Climate Change
(Transportation Systems, Scientific Mechanisms)
Environmental Committee
• Afforestation (Improve Atmosphere)
• Resources, Etc. (Recycling System)
Design
G
LIN
YC
C
RE
Business Admin. Subcommittee
North American
Planning Meeting
DE
SIG
Local Issues
Air Pollution, Water Pollution,
Waste, Noise, Etc.
To Minimize
Natural Resource
Requirements
Social/Community Subcommittee
Toyota Motor Sales,
U.S.A., Inc.
N
North American
Environmental Committee
Environmental
Coordination Office
Secretariat:
Toyota Motor North America
Environmental, Health
and Safety Department
Environmental Working Groups:
Compliance
Resource Management
Business Partners
Communication
Environmental Coordinator Network:
Facility Coordinators
Plant-Level Work Groups
To Reduce Natural Resources Use
Recycle
Steering Committee
Natura
ral
al
Resourc
Re
rces
es
W ter
Wate
Secretariat:
Toyota Motor North America
Plants
Plants
• Climate Change
• Acid Rain (NOx, SOx),
Air Pollution
• Water Pollution
• Waste
• Noise, Odors
Recycling
• Resource
Conservation, Etc.
SA
(End-of-Life Vehicles,
Industrial Waste,
Energy, CFCs)
Regional Issue
L
ES
DI
Acid Rain
ST
R IB
UT
IO N
& US
Fueelss
PR O
DU
C
TI O
Plant-Level Environment
Steering Committees
(at each of nine plants)
Environmental Affairs Division
Toyota Canada Inc.
Environmental Action Plan
Working Group
Depletion of the Ozone Layer,
Global Warming, Dwindling
Resources, Destruction of Forests
Autos
North American Manufacturing
Environmental Committee
North American
Regulatory Group
Global Issues
N
Communications
Working Group
Regulatory Affairs Division
Department of
Public Relations and Advertising
Public Relations Division
E
Environmental Coordination
Automobiles
• Air Pollution
• Noise
• Acid Rain (NOx)
• Climate Change
• Resources
ENVIRONMENTAL IMPACT OF THE
AUTOMOBILE ACROSS ITS LIFE CYCLE
Automobiles impact the environment during all of
their life cycle stages, from extraction of raw materials to
parts manufacturing, vehicle assembly, delivery logistics,
consumer use and end-of-life management. Perhaps the
most challenging of these impacts is the contribution of
automobiles to the levels of human-generated greenhouse
gases. Toyota believes that it is prudent to reduce all emissions,
including greenhouse gas emissions, from our plants,
products and processes.
ENVIRONMENTAL GOVERNANCE
AND MANAGEMENT
This report is arranged so as to correspond to these life
cycle stages.
Life Cycle I: Development and Design
Life Cycle II: Manufacturing
Life Cycle III: Sales, Distribution and Service
Life Cycle IV: Recycling End-of-Life Vehicles
We also discuss Toyota’s other environmental and
social contributions.
Responsibility for environmental governance and
management generally rests with each Toyota North
American company. In addition, the North American
Environmental Committee, a unified group referred
to within Toyota as the NAEC, serves as a high-level
coordinating forum across North America. The committee
comprises one top executive from each North American
company, as well as key executive coordinators from
Toyota Motor Corporation. In some instances, issues
requiring input or approval from Toyota’s most senior
executives are brought before Toyota’s North American
Planning Meeting (See Figure G).
Over the past year, we have made some changes to NAEC
in order to improve its effectiveness. First, we formed a
Steering Committee to serve as the planning body for the
NAEC and to administer to its various internal working
groups. The Steering Committee comprises a Secretariat;
the leader of each internal working group; and the
environmental action plan manager from each company.
The Steering Committee has the flexibility to meet more
frequently than is possible for the full NAEC, and can thus
ensure progress and communication on an almost ongoing
Beginning in 2005, Toyota will employ a comprehensive
environmental impact assessment system, called Eco-Vehicle
Assessment System. Throughout the vehicle development
process, our engineers will use this system to make a
methodical assessment of a vehicle’s environmental impact
during its entire life cycle.
page twelve
Toyota Motor Manufacturing,
North America, Inc.
TOYOTA N ORTH A MERICA
E NVIRONMENTAL R EPORT 2003
Environmental Management
basis. Second, we created a working group specifically
charged with developing and coordinating affiliate
environmental action plans and publishing this report.
Action plans continue to be implemented at the affiliate
level, but this new working group will ensure a more
cohesive overall strategy among the affiliates.
We discontinued the Stationary Source Working Group
under the NAEC, as we found the committee structure
within the manufacturing plants was better able to
manage issues arising at those facilities.
OUR ENVIRONMENTAL
ACTION PLANNING PROCESS
The Toyota Environmental Action Plan is a medium-to
long-term plan that summarizes our environmental goals
and targets. It sets five-year goals and targets designed to
help us reach Toyota’s higher-level environmental mission
and vision as expressed in the Earth Charter and Guiding
Principles. Our five-year goals are in turn translated into
annual affiliate environmental action plans, each with its
own supporting goals and targets. We provided a combined
North American Action Plan in last year’s environmental
report and we provide it here again. We have achieved
some targets and created other targets (see page 15).
page thirteen
E NVIRONMENTAL M ANAGEMENT
Environmental Coordination and Management in North America
Relationship Between Automobiles and the Environment
Figure G
Technical Subcommittees
Toyota Technical Center,
U.S.A., Inc.
Research and Analysis, Proposals
• Air Pollution, Acid Rain, Climate Change
(Transportation Systems, Scientific Mechanisms)
Environmental Committee
• Afforestation (Improve Atmosphere)
• Resources, Etc. (Recycling System)
Design
G
LIN
YC
C
RE
Business Admin. Subcommittee
North American
Planning Meeting
DE
SIG
Local Issues
Air Pollution, Water Pollution,
Waste, Noise, Etc.
To Minimize
Natural Resource
Requirements
Social/Community Subcommittee
Toyota Motor Sales,
U.S.A., Inc.
N
North American
Environmental Committee
Environmental
Coordination Office
Secretariat:
Toyota Motor North America
Environmental, Health
and Safety Department
Environmental Working Groups:
Compliance
Resource Management
Business Partners
Communication
Environmental Coordinator Network:
Facility Coordinators
Plant-Level Work Groups
To Reduce Natural Resources Use
Recycle
Steering Committee
Natura
ral
al
Resourc
Re
rces
es
W ter
Wate
Secretariat:
Toyota Motor North America
Plants
Plants
• Climate Change
• Acid Rain (NOx, SOx),
Air Pollution
• Water Pollution
• Waste
• Noise, Odors
Recycling
• Resource
Conservation, Etc.
SA
(End-of-Life Vehicles,
Industrial Waste,
Energy, CFCs)
Regional Issue
L
ES
DI
Acid Rain
ST
R IB
UT
IO N
& US
Fueelss
PR O
DU
C
TI O
Plant-Level Environment
Steering Committees
(at each of nine plants)
Environmental Affairs Division
Toyota Canada Inc.
Environmental Action Plan
Working Group
Depletion of the Ozone Layer,
Global Warming, Dwindling
Resources, Destruction of Forests
Autos
North American Manufacturing
Environmental Committee
North American
Regulatory Group
Global Issues
N
Communications
Working Group
Regulatory Affairs Division
Department of
Public Relations and Advertising
Public Relations Division
E
Environmental Coordination
Automobiles
• Air Pollution
• Noise
• Acid Rain (NOx)
• Climate Change
• Resources
ENVIRONMENTAL IMPACT OF THE
AUTOMOBILE ACROSS ITS LIFE CYCLE
Automobiles impact the environment during all of
their life cycle stages, from extraction of raw materials to
parts manufacturing, vehicle assembly, delivery logistics,
consumer use and end-of-life management. Perhaps the
most challenging of these impacts is the contribution of
automobiles to the levels of human-generated greenhouse
gases. Toyota believes that it is prudent to reduce all emissions,
including greenhouse gas emissions, from our plants,
products and processes.
ENVIRONMENTAL GOVERNANCE
AND MANAGEMENT
This report is arranged so as to correspond to these life
cycle stages.
Life Cycle I: Development and Design
Life Cycle II: Manufacturing
Life Cycle III: Sales, Distribution and Service
Life Cycle IV: Recycling End-of-Life Vehicles
We also discuss Toyota’s other environmental and
social contributions.
Responsibility for environmental governance and
management generally rests with each Toyota North
American company. In addition, the North American
Environmental Committee, a unified group referred
to within Toyota as the NAEC, serves as a high-level
coordinating forum across North America. The committee
comprises one top executive from each North American
company, as well as key executive coordinators from
Toyota Motor Corporation. In some instances, issues
requiring input or approval from Toyota’s most senior
executives are brought before Toyota’s North American
Planning Meeting (See Figure G).
Over the past year, we have made some changes to NAEC
in order to improve its effectiveness. First, we formed a
Steering Committee to serve as the planning body for the
NAEC and to administer to its various internal working
groups. The Steering Committee comprises a Secretariat;
the leader of each internal working group; and the
environmental action plan manager from each company.
The Steering Committee has the flexibility to meet more
frequently than is possible for the full NAEC, and can thus
ensure progress and communication on an almost ongoing
Beginning in 2005, Toyota will employ a comprehensive
environmental impact assessment system, called Eco-Vehicle
Assessment System. Throughout the vehicle development
process, our engineers will use this system to make a
methodical assessment of a vehicle’s environmental impact
during its entire life cycle.
page twelve
Toyota Motor Manufacturing,
North America, Inc.
TOYOTA N ORTH A MERICA
E NVIRONMENTAL R EPORT 2003
Environmental Management
basis. Second, we created a working group specifically
charged with developing and coordinating affiliate
environmental action plans and publishing this report.
Action plans continue to be implemented at the affiliate
level, but this new working group will ensure a more
cohesive overall strategy among the affiliates.
We discontinued the Stationary Source Working Group
under the NAEC, as we found the committee structure
within the manufacturing plants was better able to
manage issues arising at those facilities.
OUR ENVIRONMENTAL
ACTION PLANNING PROCESS
The Toyota Environmental Action Plan is a medium-to
long-term plan that summarizes our environmental goals
and targets. It sets five-year goals and targets designed to
help us reach Toyota’s higher-level environmental mission
and vision as expressed in the Earth Charter and Guiding
Principles. Our five-year goals are in turn translated into
annual affiliate environmental action plans, each with its
own supporting goals and targets. We provided a combined
North American Action Plan in last year’s environmental
report and we provide it here again. We have achieved
some targets and created other targets (see page 15).
page thirteen
E NVIRONMENTAL M ANAGEMENT
Consolidated Summary of North American Five-Year Action Plan
FY20061
Action Plan Goals
Targets
Status2
Achieved
On Track
X Missed
Page
Reference
Life Cycle I: Development and Design
Fuel Efficiency
• Achieve top levels of
fuel efficiency in all
vehicle classes
Emission Reductions
• Promote emission
reductions
Striving for the Ultimate Eco Car
Figure H
The Ultimate Eco Car
Clean Energy Vehicles
• Introduce cleaner
energy vehicles
HSD***
Life Cycle II: Manufacturing
Energy
• Energy reduction
FCHV
THS
DEVELOPMENT AND DESIGN
In order to provide an appropriate mix of vehicle choices
that meet varying customer needs, government regulations,
environmental objectives and local market conditions, we
research and develop a broad array of technologies (see
Figure H). The lynchpin of Toyota’s future power train
strategy in the foreseeable future is hybrid-electric vehicle
technology. We are fully committed to hybrids as a vital
part of our response to global warming and air quality
concerns. Further, successful development of hybrid
systems will facilitate an eventual migration to hybridelectric fuel cell vehicle technology. This is because, in
Toyota’s case, the hybrid system used in our fuel-cell
vehicle system is essentially the same as the hybrid system
used in our gasoline hybrid-electric system (see Figure I).
The primary difference is that the conventional gasoline
engine is replaced by the fuel-cell stack.
In order to be successful, a technology must deliver
performance, value and sociability, among other factors.
In many cases, such as hybrid-electric vehicles, we are able
to meet these criteria and deliver advanced environmental
technologies ahead of the competition. In some instances,
despite our best efforts, technology does not live up to its
expected performance or is not embraced by customers.
For example, this past year we decided to discontinue
production of the RAV4 Electric Vehicle worldwide.
Despite an aggressive retail program in California, strong
dealer support and an enticing pricing level, sales of the
RAV4 Electric Vehicle were very low, making it impractical
to continue sales. Nonetheless, we gained valuable market
experience, and made advances in component systems
such as electric drive motors and batteries that will
undoubtedly contribute to Toyota’s hybrid-electric vehicle
development program.
Substances of Concern
• Develop extensive
reduction strategies to
reduce emissions of concern
H Y B R I D T E C H N O LO G Y
D-4*
Lean
Burn
CNG
Alternative
Energy
DIESEL DI
VVT-i**
EV
Diesel
Engine
Gasoline
Engine
Electric
Vehicle
Waste Disposal
• Reduce waste and
promote resource
conservation activities
Water Use
• Implement aggressive plans
to reduce comsumption
of water
Environmental
Management Systems
• Establish Green
Supplier Guidelines
*Direct Injection 4-stroke Gasoline Engine
**Variable Valve Timing™ with Intelligence
***Hybrid Synergy Drive
Toyota Hybrid System (THS)
Hazardous Materials
• Promote excellence in
handling and transporting
hazardous materials
(”dangerous goods” in Canada)
Waste
• Reduce waste and
conserve resources
E NGINE
POWER
CONTROL UNIT
S ECONDARY
BATTERY
Energy
• Reduce energy use
• Reduce greenhouse gases
Dealers
• Promote environmental responsibility among dealers
MOTOR
Other
• Promote greener building
construction and
maintenance operations
Toyota Fuel Cell Hybrid Vehicle
• Meet Tier 2 and LEV II emission requirements.
See pg. 26
• Introduce to market additional new hybrid electric vehicles by FY2005.
• Demonstrate fuel cell technology by evaluating prototype beginning in 2001.
See pg. 28
See pg. 29
• Reduce total energy usage by 15 percent per unit of production from the base year
2000 thus resulting in a 15 percent decrease in CO2.
See pg. 33
• Reduce body-painting emissions of VOCs to less than 30 g/m2 for all paint body shops.
• Updated target: Reduce body-painting emissions of VOCs to less than 22 g/m2 for all paint body shops.
• Reduce toxic chemicals emitted to air to 1.0 kg/vehicle or less for entire plant.
• Updated target: Reduce toxic chemicals emitted to air to 0.7 kg/vehicle or less for entire plant.
• Continue R&D activities aimed at eliminating all VOCs and toxic chemicals from coolants
and cutting oils used in unit plants.
See pg. 35
See pg. 35
See pg. 36
See pg. 36
See pg. 36
• Reduce hazardous waste disposal to landfills by 95 percent from base year 1999.
• New Target: Reduce landfill of all waste by 70 percent from base year of 1999.
See pg. 37
See pg. 37
• Reduce total water usage by 15 percent per unit of production from base year of 2000.
See pg. 38
• Certify/register key suppliers to ISO 14001 by December 2003.
• Comply with Chemical Ban List/Environmental Data Sheet.
• Develop procedures that ensure compliance with hazardous materials/dangerous
goods transportation guidelines3.
See pg. 39
See pg. 39
See pg. 39
See pg. 43
• Maintain 100 percent compliance with all applicable HAZMAT/dangerous goods
regulations.
See pg. 44
• Implement a nationwide waste-tracking program.
• Set nationwide waste-reduction targets (United States only).
• Implement a returnable-packaging program at parts distribution centers.
• Increase returnable-packaging and direct shipment programs for vehicle
distribution centers.
• Establish an energy usage database.
• New target: Reduce total energy consumption 15 percent by FY2006.
• Compile a greenhouse gas inventory by 2004.
See pg. 45
See pg. 45
See pg. 46
See pg. 46
• Add enhanced features to the Environmental Assistance Network Web site for dealers (U.S. only).
• Introduce Environmental Guidelines to Canadian dealer network by FY2003.
See pg. 48
See pg. 48
• Achieve LEEDTM certification for the U.S. sales headquarters South Campus buildings by
the end of 2003.
• New target: Develop sustainable operations standards for TMS, U.S.A., Inc., facilities.
See pg. 46
See pg. 46
See pg. 47
See pg. 49
See pg. 49
Fuel Cell
S ECONDARY
BATTERY
Life Cycle IV: Recycling End-of-Life Vehicles
Substances of Concern
• Manage substances
• Gather North American baseline data for selected SOCs.
of concern
• Develop North American SOC strategy for beyond FY2002.
Vehicle Recyclability
• Develop recycling designs
• Incorporate material and design strategies for increased vehicle recyclability.
and promote expanded
use of recycled materials
POWER
CONTROL UNIT
Toyota’s Environmental Contributions
Environmental
Communication
• Promote environmental communication with community and key organizations.
• Enhance environmental
• Enhance environmental communication activities.
communication activities
in each region/country
MOTOR
1
2
3
page fourteen
See pg. 25
Life Cycle III: Sales, Distribution and Service
Environmental
Management Systems
• Achieve ISO 14001 certification/registration at all parts and vehicle distribution centers
• Establish an Environmental
by FY2005 in the U.S., and by FY2003 in Canada.
Management System
Adaptibility of the Toyota Hybrid System
Figure I
• Exceed CAFE/CAFC requirements for passengers and light-duty trucks.
TOYOTA N ORTH A MERICA
See pg. 51
See pg. 51
See pg. 51
See pg. 53
See pg. 55
Target dates in this action plan have not changed from the 2002 Environmental Report. We have converted all action plan goals and targets to a Financial Year calendar (April to March) for better comparability.
Targets for FY 2006 denote April 2005 to March 2006.
Status indicated refers, in some cases, to progress towards achieving the five-year goal. In other cases, the status refers to an annual target in support of the five-year goal. Details are provided in the body of the report.
This target was omitted in error from our 2003 Environmental Report.
E NVIRONMENTAL R EPORT 2003
page fifteen
E NVIRONMENTAL M ANAGEMENT
Consolidated Summary of North American Five-Year Action Plan
FY20061
Action Plan Goals
Targets
Status2
Achieved
On Track
X Missed
Page
Reference
Life Cycle I: Development and Design
Fuel Efficiency
• Achieve top levels of
fuel efficiency in all
vehicle classes
Emission Reductions
• Promote emission
reductions
Striving for the Ultimate Eco Car
Figure H
The Ultimate Eco Car
Clean Energy Vehicles
• Introduce cleaner
energy vehicles
HSD***
Life Cycle II: Manufacturing
Energy
• Energy reduction
FCHV
THS
DEVELOPMENT AND DESIGN
In order to provide an appropriate mix of vehicle choices
that meet varying customer needs, government regulations,
environmental objectives and local market conditions, we
research and develop a broad array of technologies (see
Figure H). The lynchpin of Toyota’s future power train
strategy in the foreseeable future is hybrid-electric vehicle
technology. We are fully committed to hybrids as a vital
part of our response to global warming and air quality
concerns. Further, successful development of hybrid
systems will facilitate an eventual migration to hybridelectric fuel cell vehicle technology. This is because, in
Toyota’s case, the hybrid system used in our fuel-cell
vehicle system is essentially the same as the hybrid system
used in our gasoline hybrid-electric system (see Figure I).
The primary difference is that the conventional gasoline
engine is replaced by the fuel-cell stack.
In order to be successful, a technology must deliver
performance, value and sociability, among other factors.
In many cases, such as hybrid-electric vehicles, we are able
to meet these criteria and deliver advanced environmental
technologies ahead of the competition. In some instances,
despite our best efforts, technology does not live up to its
expected performance or is not embraced by customers.
For example, this past year we decided to discontinue
production of the RAV4 Electric Vehicle worldwide.
Despite an aggressive retail program in California, strong
dealer support and an enticing pricing level, sales of the
RAV4 Electric Vehicle were very low, making it impractical
to continue sales. Nonetheless, we gained valuable market
experience, and made advances in component systems
such as electric drive motors and batteries that will
undoubtedly contribute to Toyota’s hybrid-electric vehicle
development program.
Substances of Concern
• Develop extensive
reduction strategies to
reduce emissions of concern
H Y B R I D T E C H N O LO G Y
D-4*
Lean
Burn
CNG
Alternative
Energy
DIESEL DI
VVT-i**
EV
Diesel
Engine
Gasoline
Engine
Electric
Vehicle
Waste Disposal
• Reduce waste and
promote resource
conservation activities
Water Use
• Implement aggressive plans
to reduce comsumption
of water
Environmental
Management Systems
• Establish Green
Supplier Guidelines
*Direct Injection 4-stroke Gasoline Engine
**Variable Valve Timing™ with Intelligence
***Hybrid Synergy Drive
Toyota Hybrid System (THS)
Hazardous Materials
• Promote excellence in
handling and transporting
hazardous materials
(”dangerous goods” in Canada)
Waste
• Reduce waste and
conserve resources
E NGINE
POWER
CONTROL UNIT
S ECONDARY
BATTERY
Energy
• Reduce energy use
• Reduce greenhouse gases
Dealers
• Promote environmental responsibility among dealers
MOTOR
Other
• Promote greener building
construction and
maintenance operations
Toyota Fuel Cell Hybrid Vehicle
• Meet Tier 2 and LEV II emission requirements.
See pg. 26
• Introduce to market additional new hybrid electric vehicles by FY2005.
• Demonstrate fuel cell technology by evaluating prototype beginning in 2001.
See pg. 28
See pg. 29
• Reduce total energy usage by 15 percent per unit of production from the base year
2000 thus resulting in a 15 percent decrease in CO2.
See pg. 33
• Reduce body-painting emissions of VOCs to less than 30 g/m2 for all paint body shops.
• Updated target: Reduce body-painting emissions of VOCs to less than 22 g/m2 for all paint body shops.
• Reduce toxic chemicals emitted to air to 1.0 kg/vehicle or less for entire plant.
• Updated target: Reduce toxic chemicals emitted to air to 0.7 kg/vehicle or less for entire plant.
• Continue R&D activities aimed at eliminating all VOCs and toxic chemicals from coolants
and cutting oils used in unit plants.
See pg. 35
See pg. 35
See pg. 36
See pg. 36
See pg. 36
• Reduce hazardous waste disposal to landfills by 95 percent from base year 1999.
• New Target: Reduce landfill of all waste by 70 percent from base year of 1999.
See pg. 37
See pg. 37
• Reduce total water usage by 15 percent per unit of production from base year of 2000.
See pg. 38
• Certify/register key suppliers to ISO 14001 by December 2003.
• Comply with Chemical Ban List/Environmental Data Sheet.
• Develop procedures that ensure compliance with hazardous materials/dangerous
goods transportation guidelines3.
See pg. 39
See pg. 39
See pg. 39
See pg. 43
• Maintain 100 percent compliance with all applicable HAZMAT/dangerous goods
regulations.
See pg. 44
• Implement a nationwide waste-tracking program.
• Set nationwide waste-reduction targets (United States only).
• Implement a returnable-packaging program at parts distribution centers.
• Increase returnable-packaging and direct shipment programs for vehicle
distribution centers.
• Establish an energy usage database.
• New target: Reduce total energy consumption 15 percent by FY2006.
• Compile a greenhouse gas inventory by 2004.
See pg. 45
See pg. 45
See pg. 46
See pg. 46
• Add enhanced features to the Environmental Assistance Network Web site for dealers (U.S. only).
• Introduce Environmental Guidelines to Canadian dealer network by FY2003.
See pg. 48
See pg. 48
• Achieve LEEDTM certification for the U.S. sales headquarters South Campus buildings by
the end of 2003.
• New target: Develop sustainable operations standards for TMS, U.S.A., Inc., facilities.
See pg. 46
See pg. 46
See pg. 47
See pg. 49
See pg. 49
Fuel Cell
S ECONDARY
BATTERY
Life Cycle IV: Recycling End-of-Life Vehicles
Substances of Concern
• Manage substances
• Gather North American baseline data for selected SOCs.
of concern
• Develop North American SOC strategy for beyond FY2002.
Vehicle Recyclability
• Develop recycling designs
• Incorporate material and design strategies for increased vehicle recyclability.
and promote expanded
use of recycled materials
POWER
CONTROL UNIT
Toyota’s Environmental Contributions
Environmental
Communication
• Promote environmental communication with community and key organizations.
• Enhance environmental
• Enhance environmental communication activities.
communication activities
in each region/country
MOTOR
1
2
3
page fourteen
See pg. 25
Life Cycle III: Sales, Distribution and Service
Environmental
Management Systems
• Achieve ISO 14001 certification/registration at all parts and vehicle distribution centers
• Establish an Environmental
by FY2005 in the U.S., and by FY2003 in Canada.
Management System
Adaptibility of the Toyota Hybrid System
Figure I
• Exceed CAFE/CAFC requirements for passengers and light-duty trucks.
TOYOTA N ORTH A MERICA
See pg. 51
See pg. 51
See pg. 51
See pg. 53
See pg. 55
Target dates in this action plan have not changed from the 2002 Environmental Report. We have converted all action plan goals and targets to a Financial Year calendar (April to March) for better comparability.
Targets for FY 2006 denote April 2005 to March 2006.
Status indicated refers, in some cases, to progress towards achieving the five-year goal. In other cases, the status refers to an annual target in support of the five-year goal. Details are provided in the body of the report.
This target was omitted in error from our 2003 Environmental Report.
E NVIRONMENTAL R EPORT 2003
page fifteen
E NVIRONMENTAL M ANAGEMENT
Toyota is working to reduce waste as much as
possible and recycle whatever can be reused
throughout the entire lifecycle of the automobile.
INDUSTRY ALLIANCE COMMITS TO REDUCING
GREENHOUSE GASES
In the United States,Toyota is a member of the Alliance of Automobile
Manufacturers, which has committed to participating in the U.S.
Department of Energy’s Climate VISION. Climate VISION is a
presidential public/private partnership initiative launched by the
Department of Energy to contribute to the president’s goal of
reducing greenhouse gas intensity. Member companies of the
Alliance commit to achieve by 2012 at least a 10 percent reduction
in greenhouse gas emissions from their U.S. automotive
manufacturing facilities, based on U.S. vehicle production, from a
base year of 2002. For Toyota, this commitment complements our
existing energy reduction targets. In order to track progress towards
this commitment, Toyota is submitting a voluntary greenhouse
gas report utilizing the protocols of the DOE 1605(b) reporting
program. Please visit www.toyota.com/ about/environment
to access a copy of this report.
MANUFACTURING
Toyota seeks to become the leader in environmental
performance among automobile manufacturers. We have
established a five-year action plan that sets aggressive
targets for reducing energy use and carbon dioxide emissions
in our North American manufacturing facilities. Additional
information about our manufacturing targets and progress
can be found beginning on page 33. In addition, in the
United States, Toyota is participating in the U.S. Department
of Energy’s Climate VISION program to reduce greenhouse
gas intensity and to improve energy efficiency in U.S.
automotive manufacturing plants (see sidebar).
SALES AND DISTRIBUTION
Our sales and distribution organization is integrating
environmental management at many levels. This is more
fully described beginning on page 45. We are a leader in
green building design and our flagship work is being
integrated across our whole organization and the North
American region (see sidebar on page 18). This year we
|are working even more closely with our dealers on
environmental issues. Toyota will introduce dealer
environmental guidelines in Canada by FY2003.
RECYCLING
Mark Yamauchi, facilities strategic planning manager, reviews an array of
photovoltaic panels that provide 536 kW of solar energy to Toyota’s South
Campus headquarters complex in Torrance, California.
page sixteen
Toyota is working to reduce waste as much as possible
and recycle whatever can be reused throughout the entire
lifecycle of the automobile, i.e., development, production,
use and disposal stages. In order to utilize limited resources
more effectively, the results of these efforts are fed back
to the development area, which in turn strives to make
automobiles that take recycling into consideration. We
describe these activities more fully on page 51.
TOYOTA N ORTH A MERICA
Globally, Toyota has invested significant resources toward
the improvement of vehicle recyclability. In Japan, we
operate both a world-class ASR Recycling and Recovery
Pilot Plant to recover materials from automobile shredder
residue, termed “ASR,” and an Automobile Recycle
Technical Center to promote research on dismantling
vehicles. We are also conducting significant efforts in
Europe to support the vehicle recycling infrastructure
toward European Union Directive targets for recyclability.
In June 2003, we initiated “Toyota Recycle Vision,” a set
of action guidelines, to improve vehicle recovery, increase
the use of recycled materials, raise the number of used
parts in the aftermarket and reduce use of substances
of environmental concern. Toyota Recycle Vision is a part
of Toyota’s implementation of its Global Earth Charter
and Environmental Action Plans, worldwide programs
for reducing environmental impacts. We will report
more on the Toyota Recycle Vision initiative in our next
Environmental Report. For further information, please see
www.toyota.co.jp /IRweb/corp_info/pr/2003/0609.html.
Toyota Recycle Vision—Topics and Targets
Topic
Target
Current State (in Japan)
Steady improvement of vehicle
recovery rate in Japan and Europe
Early achievement of announced Japanese standards; steady
achievement of announced European standards*
Vehicle recovery rate: 80-83 percent
Increased use of recyclable resources
and recycled materials
Development of technology allowing 20 percent use of resin parts
in 2015 (combining Toyota Eco-Plastic and recycled materials)
Use of Toyota Eco-Plastic started with launch of secondgeneration Raum in May 2003
Increased use of used parts
Ten-fold increase in sales of used parts by 2010
(compared to 2002)
CY2002 sales: 23,000 parts
Reduction in substances of
environmental concern
Implementation worldwide of common standards in 2003
Basic policy established for adopting global response
Introduction from 2006 in Japan and Europe of vehicles with
zero amount of mercury, cadmium and chromium (VI); lead
use to be reduced to 1/10 or less of level in 1996
Hitherto target: introduction from 2006 of vehicles with
zero use of substances of environmental concern (with
exception of lead, which is to be reduced to 1/10 or less
of level in 1996)
(By 2002, the average volume of lead used in newly
introduced models was 1/6 the level used in 1996.)
*In Japan: ASR recycling rate of 30 percent in 2005, 50 percent in 2010 and 70 percent in 2015; vehicle recovery rate equivalent to 88 percent in 2005, 92 percent
in 2010 and 95 percent in 2015. In Europe: vehicle recovery rate of 85 percent in 2006 and 95 percent in 2015.
E NVIRONMENTAL R EPORT 2003
page seventeen
E NVIRONMENTAL M ANAGEMENT
Toyota is working to reduce waste as much as
possible and recycle whatever can be reused
throughout the entire lifecycle of the automobile.
INDUSTRY ALLIANCE COMMITS TO REDUCING
GREENHOUSE GASES
In the United States,Toyota is a member of the Alliance of Automobile
Manufacturers, which has committed to participating in the U.S.
Department of Energy’s Climate VISION. Climate VISION is a
presidential public/private partnership initiative launched by the
Department of Energy to contribute to the president’s goal of
reducing greenhouse gas intensity. Member companies of the
Alliance commit to achieve by 2012 at least a 10 percent reduction
in greenhouse gas emissions from their U.S. automotive
manufacturing facilities, based on U.S. vehicle production, from a
base year of 2002. For Toyota, this commitment complements our
existing energy reduction targets. In order to track progress towards
this commitment, Toyota is submitting a voluntary greenhouse
gas report utilizing the protocols of the DOE 1605(b) reporting
program. Please visit www.toyota.com/ about/environment
to access a copy of this report.
MANUFACTURING
Toyota seeks to become the leader in environmental
performance among automobile manufacturers. We have
established a five-year action plan that sets aggressive
targets for reducing energy use and carbon dioxide emissions
in our North American manufacturing facilities. Additional
information about our manufacturing targets and progress
can be found beginning on page 33. In addition, in the
United States, Toyota is participating in the U.S. Department
of Energy’s Climate VISION program to reduce greenhouse
gas intensity and to improve energy efficiency in U.S.
automotive manufacturing plants (see sidebar).
SALES AND DISTRIBUTION
Our sales and distribution organization is integrating
environmental management at many levels. This is more
fully described beginning on page 45. We are a leader in
green building design and our flagship work is being
integrated across our whole organization and the North
American region (see sidebar on page 18). This year we
|are working even more closely with our dealers on
environmental issues. Toyota will introduce dealer
environmental guidelines in Canada by FY2003.
RECYCLING
Mark Yamauchi, facilities strategic planning manager, reviews an array of
photovoltaic panels that provide 536 kW of solar energy to Toyota’s South
Campus headquarters complex in Torrance, California.
page sixteen
Toyota is working to reduce waste as much as possible
and recycle whatever can be reused throughout the entire
lifecycle of the automobile, i.e., development, production,
use and disposal stages. In order to utilize limited resources
more effectively, the results of these efforts are fed back
to the development area, which in turn strives to make
automobiles that take recycling into consideration. We
describe these activities more fully on page 51.
TOYOTA N ORTH A MERICA
Globally, Toyota has invested significant resources toward
the improvement of vehicle recyclability. In Japan, we
operate both a world-class ASR Recycling and Recovery
Pilot Plant to recover materials from automobile shredder
residue, termed “ASR,” and an Automobile Recycle
Technical Center to promote research on dismantling
vehicles. We are also conducting significant efforts in
Europe to support the vehicle recycling infrastructure
toward European Union Directive targets for recyclability.
In June 2003, we initiated “Toyota Recycle Vision,” a set
of action guidelines, to improve vehicle recovery, increase
the use of recycled materials, raise the number of used
parts in the aftermarket and reduce use of substances
of environmental concern. Toyota Recycle Vision is a part
of Toyota’s implementation of its Global Earth Charter
and Environmental Action Plans, worldwide programs
for reducing environmental impacts. We will report
more on the Toyota Recycle Vision initiative in our next
Environmental Report. For further information, please see
www.toyota.co.jp /IRweb/corp_info/pr/2003/0609.html.
Toyota Recycle Vision—Topics and Targets
Topic
Target
Current State (in Japan)
Steady improvement of vehicle
recovery rate in Japan and Europe
Early achievement of announced Japanese standards; steady
achievement of announced European standards*
Vehicle recovery rate: 80-83 percent
Increased use of recyclable resources
and recycled materials
Development of technology allowing 20 percent use of resin parts
in 2015 (combining Toyota Eco-Plastic and recycled materials)
Use of Toyota Eco-Plastic started with launch of secondgeneration Raum in May 2003
Increased use of used parts
Ten-fold increase in sales of used parts by 2010
(compared to 2002)
CY2002 sales: 23,000 parts
Reduction in substances of
environmental concern
Implementation worldwide of common standards in 2003
Basic policy established for adopting global response
Introduction from 2006 in Japan and Europe of vehicles with
zero amount of mercury, cadmium and chromium (VI); lead
use to be reduced to 1/10 or less of level in 1996
Hitherto target: introduction from 2006 of vehicles with
zero use of substances of environmental concern (with
exception of lead, which is to be reduced to 1/10 or less
of level in 1996)
(By 2002, the average volume of lead used in newly
introduced models was 1/6 the level used in 1996.)
*In Japan: ASR recycling rate of 30 percent in 2005, 50 percent in 2010 and 70 percent in 2015; vehicle recovery rate equivalent to 88 percent in 2005, 92 percent
in 2010 and 95 percent in 2015. In Europe: vehicle recovery rate of 85 percent in 2006 and 95 percent in 2015.
E NVIRONMENTAL R EPORT 2003
page seventeen
E NVIRONMENTAL M ANAGEMENT
GREEN BUILDING DESIGN IN TORRANCE, CALIFORNIA
Some key environmental data for the new South Campus
headquarters complex include:
•
Annual forecasted environmental cost savings:
$150,000 due to the photovoltaic system — from
our financial model. The system will pay for itself
in seven years;
$400,000 due to energy efficiency of building;
$120,000 due to water efficiency of building.
•
REGIONAL CROSSCUTTING ISSUES
Annual forecasted energy savings (base building systems
load not including plug load):
26,250,000 BTU (can be equated to emissions avoided
because of natural gas not used — either direct use or
because of electricity not generated — per year);
630,000 kW of electricity produced by the solar
photovoltaic system per year (can be translated
into emissions that would have been produced
by electricity generating plants).
ENVIRONMENTALLY SOUND INVESTMENT:
GREEN BUILDINGS
Toyota’s South Campus, at our U.S. sales and distribution headquarters
complex in Torrance, California, is the largest project to date to receive
the U.S. Green Building Council’s Gold LEED™ Award — LEED stands for
Leadership in Energy and Environmental Design.The U.S. Green Building
Council, headquartered in Washington, D.C., is a non-profit coalition that
promotes the understanding,development and accelerated implementation
of green building policies, programs, technologies, standards and design
practices.Toyota is working to learn from these experiences and replicate
them where possible.
Interior design follows the same principles: vendors supplied webbed chairs
made of used seat belts and benches constructed from recycled beverage
cans.We successfully influenced of our suppliers to meet our environmental
goals while keeping costs under control.We used fabrics and paints that
have reduced emissions and used furniture that is developed from “green
practices.”We are requiring our carpet supplier from the South Campus
Complex, as well as our other sales offices, to reclaim the carpeting when it
reaches its end of life.
The 536 kW photovoltaic solar energy rooftop system at the South Campus
complex has an expected life of at least 25 years. In addition to the
photovoltaic system, which can meet up to20 percent of the buildings’
energy needs, the complex has an array of energy-saving features.Nearly all
employees will work under natural daylight. Motion sensors allow indirect
lighting to be turned on in dark areas only as needed and we use a high
grade of heat-reflecting window glass.As a result of these energy-saving
efforts,the complex exceeds California’s energy standards by 20 percent.
page eighteen
(Left to right) Robert Pitts, group vice president, Administrative Services,
and Sanford Smith, corporate manager, Real Estate and Facilities, accept
the Leadership in Energy and Environmental Design (LEED) Gold Award
from Christine Ervin, president and CEO, the United States Green Building
Council, at Toyota’s South Campus Grand Opening Ceremonies, held on
Earth Day, April 22,2003.
Other green aspects of the complex include low-maintenance landscaping,
featuring drought-tolerant plants and native grasses that are irrigated with
recycled water.We took steps to protect indoor air quality, including housing
copier machines in separate small rooms with their own exhaust systems.
Also, the ductwork was capped at both ends before it was delivered so that
it would not collect dirt while it was awaiting installation.
PROMOTION OF GREENER BUILDING
CONSTRUCTION AND MAINTENANCE
OPERATIONS
Toyota is committed to investments that make economic and environmental
sense.This is illustrated in our building projects, on which we spent over
U.S. $220 million in FY2003 and expect to spend $140 million in FY2004.
Our Real Estate and Facilities Department has made a strong commitment
to environmental sustainability,implementing a series of projects in Torrance
developed under an initiative called Process Green. (This name is used in the
United States only,although the activity is being applied across the region.)
Detail on these activities is provided on pages 48-49.
ESTABLISHMENT OF ECO-PLANT TARGETS
FOR MANUFACTURING
Every year,Toyota works to reduce the environmental impact of our plants;
employing the principle of kaizen, Japanese for continuous improvement.
Now, we have established eco-plant targets for our new facilities in Mexico
and Alabama, to ensure that we included our past learning from the start of
operations.Texans will be able to see Toyota’s commitment to the environment
at our new Texas facility in San Antonio.Toyota is committed to making this
plant our most environmentally advanced by applying the best technology
and expertise from around the world to build it and to run it.
TOYOTA N ORTH A MERICA
Toyota has a long tradition of building on existing best
practices and strengthening our regional business
position. We recognize that sharing results of successful
environmental initiatives that cut across affiliate company
lines will improve our overall performance in North America.
The following discusses several areas where we have begun
to coordinate activities among our affiliate companies.
GREENING SUPPLIERS
Our environmental efforts rely, to a large extent, on our
ability to develop a “green” supply chain. We have required
our manufacturing suppliers to conform to our list of
banned substances, and also to become certified, or
registered, to the international standard for environmental
management systems, ISO 14001. This is discussed in
more detail on page 39. We are also working with product
suppliers outside of manufacturing (see page 43).
Our sales operations set a new target to develop sustainable
operations standards for facilities at Toyota Motor Sales,
U.S.A., Inc. (see page 49). In the construction of the
Torrance campus, Toyota challenged its suppliers to meet
its environmental goals while keeping costs under control.
Two examples show how this resulted in creative responses
from our suppliers outside of manufacturing that brought
environmental and economic advantage to both sides —
and to the planet:
Interface Inc., a commercial fiber company based in Kennesaw,
Georgia, supplied the carpet tiles used throughout the
Toyota building. Interface has had an environmental
program since 1994. Under its contract with Toyota, the
company will reclaim the South Campus carpeting when
it becomes worn, in order to keep it out of landfills.
EMPLOYEE ENVIRONMENTAL EDUCATION
Toyota considers environmental education and awarenesspromotion activities to be an important basis for encouraging
environmental action and continually enhancing
environmental performance.
We are developing environmental education to help employees
feel an affinity with the terms of our environmental policy
and improve practical application of the policy at each
workplace. We are creating activities that will enable
employees to express their environmental consciousness
in everyday life. On Earth Day, representatives from
environmental organizations and government agencies are
invited to visit our headquarters. These visitors make
presentations about their work. They also talk with
associates about their environmental activities at Toyota
and encourage their ongoing participation.
Knoll Inc., a New York-based furniture company, has
taken various steps over the years to eliminate or reduce
emissions from fabrics and paints used in its furniture.
Negotiations with Toyota gave new impetus to these
efforts. Knoll challenged its suppliers to provide more
documentation on their source material and is now
actively marketing its line of green furniture and fabrics.
E NVIRONMENTAL R EPORT 2003
page nineteen
E NVIRONMENTAL M ANAGEMENT
GREEN BUILDING DESIGN IN TORRANCE, CALIFORNIA
Some key environmental data for the new South Campus
headquarters complex include:
•
Annual forecasted environmental cost savings:
$150,000 due to the photovoltaic system — from
our financial model. The system will pay for itself
in seven years;
$400,000 due to energy efficiency of building;
$120,000 due to water efficiency of building.
•
REGIONAL CROSSCUTTING ISSUES
Annual forecasted energy savings (base building systems
load not including plug load):
26,250,000 BTU (can be equated to emissions avoided
because of natural gas not used — either direct use or
because of electricity not generated — per year);
630,000 kW of electricity produced by the solar
photovoltaic system per year (can be translated
into emissions that would have been produced
by electricity generating plants).
ENVIRONMENTALLY SOUND INVESTMENT:
GREEN BUILDINGS
Toyota’s South Campus, at our U.S. sales and distribution headquarters
complex in Torrance, California, is the largest project to date to receive
the U.S. Green Building Council’s Gold LEED™ Award — LEED stands for
Leadership in Energy and Environmental Design.The U.S. Green Building
Council, headquartered in Washington, D.C., is a non-profit coalition that
promotes the understanding,development and accelerated implementation
of green building policies, programs, technologies, standards and design
practices.Toyota is working to learn from these experiences and replicate
them where possible.
Interior design follows the same principles: vendors supplied webbed chairs
made of used seat belts and benches constructed from recycled beverage
cans.We successfully influenced of our suppliers to meet our environmental
goals while keeping costs under control.We used fabrics and paints that
have reduced emissions and used furniture that is developed from “green
practices.”We are requiring our carpet supplier from the South Campus
Complex, as well as our other sales offices, to reclaim the carpeting when it
reaches its end of life.
The 536 kW photovoltaic solar energy rooftop system at the South Campus
complex has an expected life of at least 25 years. In addition to the
photovoltaic system, which can meet up to20 percent of the buildings’
energy needs, the complex has an array of energy-saving features.Nearly all
employees will work under natural daylight. Motion sensors allow indirect
lighting to be turned on in dark areas only as needed and we use a high
grade of heat-reflecting window glass.As a result of these energy-saving
efforts,the complex exceeds California’s energy standards by 20 percent.
page eighteen
(Left to right) Robert Pitts, group vice president, Administrative Services,
and Sanford Smith, corporate manager, Real Estate and Facilities, accept
the Leadership in Energy and Environmental Design (LEED) Gold Award
from Christine Ervin, president and CEO, the United States Green Building
Council, at Toyota’s South Campus Grand Opening Ceremonies, held on
Earth Day, April 22,2003.
Other green aspects of the complex include low-maintenance landscaping,
featuring drought-tolerant plants and native grasses that are irrigated with
recycled water.We took steps to protect indoor air quality, including housing
copier machines in separate small rooms with their own exhaust systems.
Also, the ductwork was capped at both ends before it was delivered so that
it would not collect dirt while it was awaiting installation.
PROMOTION OF GREENER BUILDING
CONSTRUCTION AND MAINTENANCE
OPERATIONS
Toyota is committed to investments that make economic and environmental
sense.This is illustrated in our building projects, on which we spent over
U.S. $220 million in FY2003 and expect to spend $140 million in FY2004.
Our Real Estate and Facilities Department has made a strong commitment
to environmental sustainability,implementing a series of projects in Torrance
developed under an initiative called Process Green. (This name is used in the
United States only,although the activity is being applied across the region.)
Detail on these activities is provided on pages 48-49.
ESTABLISHMENT OF ECO-PLANT TARGETS
FOR MANUFACTURING
Every year,Toyota works to reduce the environmental impact of our plants;
employing the principle of kaizen, Japanese for continuous improvement.
Now, we have established eco-plant targets for our new facilities in Mexico
and Alabama, to ensure that we included our past learning from the start of
operations.Texans will be able to see Toyota’s commitment to the environment
at our new Texas facility in San Antonio.Toyota is committed to making this
plant our most environmentally advanced by applying the best technology
and expertise from around the world to build it and to run it.
TOYOTA N ORTH A MERICA
Toyota has a long tradition of building on existing best
practices and strengthening our regional business
position. We recognize that sharing results of successful
environmental initiatives that cut across affiliate company
lines will improve our overall performance in North America.
The following discusses several areas where we have begun
to coordinate activities among our affiliate companies.
GREENING SUPPLIERS
Our environmental efforts rely, to a large extent, on our
ability to develop a “green” supply chain. We have required
our manufacturing suppliers to conform to our list of
banned substances, and also to become certified, or
registered, to the international standard for environmental
management systems, ISO 14001. This is discussed in
more detail on page 39. We are also working with product
suppliers outside of manufacturing (see page 43).
Our sales operations set a new target to develop sustainable
operations standards for facilities at Toyota Motor Sales,
U.S.A., Inc. (see page 49). In the construction of the
Torrance campus, Toyota challenged its suppliers to meet
its environmental goals while keeping costs under control.
Two examples show how this resulted in creative responses
from our suppliers outside of manufacturing that brought
environmental and economic advantage to both sides —
and to the planet:
Interface Inc., a commercial fiber company based in Kennesaw,
Georgia, supplied the carpet tiles used throughout the
Toyota building. Interface has had an environmental
program since 1994. Under its contract with Toyota, the
company will reclaim the South Campus carpeting when
it becomes worn, in order to keep it out of landfills.
EMPLOYEE ENVIRONMENTAL EDUCATION
Toyota considers environmental education and awarenesspromotion activities to be an important basis for encouraging
environmental action and continually enhancing
environmental performance.
We are developing environmental education to help employees
feel an affinity with the terms of our environmental policy
and improve practical application of the policy at each
workplace. We are creating activities that will enable
employees to express their environmental consciousness
in everyday life. On Earth Day, representatives from
environmental organizations and government agencies are
invited to visit our headquarters. These visitors make
presentations about their work. They also talk with
associates about their environmental activities at Toyota
and encourage their ongoing participation.
Knoll Inc., a New York-based furniture company, has
taken various steps over the years to eliminate or reduce
emissions from fabrics and paints used in its furniture.
Negotiations with Toyota gave new impetus to these
efforts. Knoll challenged its suppliers to provide more
documentation on their source material and is now
actively marketing its line of green furniture and fabrics.
E NVIRONMENTAL R EPORT 2003
page nineteen
E NVIRONMENTAL M ANAGEMENT
“We are doing our part as a good corporate citizen
by developing environmentally advanced vehicles
with high mileage and low emissions to combat
air pollution.”
— Yukitoshi Funo, President and Chief Executive Officer,
Toyota Motor Sales, U.S.A., Inc.
Team Leaders Mike McMeans and Doug Weeks check
data during a compliance review at Toyota Motor
Manufacturing, Alabama, Inc., Huntsville, Alabama.
As is the case throughout Toyota, manufacturing devoted a
significant number of man-hours to training. Some examples
of the types of training provided to employees include:
• New team member environmental
orientation training;
COMPLIANCE, AUDITS AND TRAINING
Environmental excellence begins with compliance to
applicable local, state and federal regulations. Leadership
requires a company to go beyond compliance. As standard
practice, Toyota seeks to have a record of zero violations.
We also conduct regular due diligence audits and compliance
training across our operations.
Toyota considers regulatory compliance a fundamental
business requirement of the highest priority for all operations.
We achieved our targets of zero violations for applicable
regulations pertaining to hazardous materials, referred to
as HAZMAT in the United States, and called “dangerous
goods” in Canada. This represents a record of five years
with no HAZMAT/dangerous goods violations.
However, in facilities operations in FY2003, Toyota received
three notices of violation, resulting in $5,000 in regulatory
penalties collectively, as well as a few minor violations
that did not warrant any penalties. While Toyota takes
any issue of non-compliance very seriously, it is important
to note that these violations were immediately corrected
and were primarily for administrative matters that have
no adverse impact on the environment. Nevertheless,
Toyota is reviewing current control measures to evaluate
if improvements can be made in order to eliminate all
instances of non-compliance.
• ISO 14001 General Awareness training to assist
team members with their understanding of
environmental management procedures;
• Due diligence auditing procedures to assist team
members in auditing of potential recyclers waste
management companies;
• Resource Conservation and Recovery Act,
RCRA, training for team members who manage
waste as a normal part of their daily activities;
• Contractor environmental management training
for Toyota new site construction requirements.
In addition to Toyota’s internal training programs, many
team members also take part in specialized training programs
offered by outside companies.
Toyota’s training is not limited to team members of Toyota.
For example, as part of the Green Supplier program, Toyota
Motor Manufacturing, North America, Inc., developed an
ISO 14001 guidance program on CD to assist suppliers in
achieving certification/registration.
We conduct annual, scheduled compliance reviews of our
sales and distribution operations, as well as surprise reviews,
to help them remain in compliance with regulations. If
the facility has been ISO certified/registered they are
subject to an additional, annual ISO conformance review
(see page 43).
In addition to these reviews, we provide our coordinators
with the tools and training needed to support their efforts.
We supplied classroom training for over 400 sales associates
on the following subjects: HAZMAT/dangerous goods
transportation, HAZWASTE disposal, incident and spill
response. We provided this training in conjunction with
site compliance audits.
ENVIRONMENTALLY RELATED LEGAL
SETTLEMENTS AND LIABILITIES
In March 2003, Toyota entered into a Consent Decree with
the U.S. Environmental Protection Agency that ended a
dispute over the certification process concerning the onboard diagnostic systems for MY1996-98 Toyota and Lexus
models. EPA alleged that, in its certification documents,
Toyota had failed to fully disclose certain software conditions
that limit the operation of on-board diagnostic system. EPA
did not allege that such non-compliance materially affected
the level of emissions from the affected vehicles. Toyota
denied that its regulatory submissions were non-compliant.
The Consent Decree can be viewed at: www.epa.gov/
compliance/resources/decrees/civil/caa/toyotacd.pdf.
RISK MANAGEMENT
With any type of manufacturing, spills of raw materials
can occur at any time. At Toyota, our facilities are designed
to contain spills within the confines of specially designed
containment structures. These specially designed structures
have enabled Toyota to avoid contaminating ground water
and soil at its manufacturing sites. While we had no
releases resulting in contamination in FY2003, at one of
our facilities, we are proactively monitoring contamination
caused by a neighboring plant.
2003 ENVIRONMENTAL
COMPLIANCE TRAINING CONFERENCE
In Torrance, California, from February 10 – 13, 2003, we held
our second annual Environmental Compliance Conference at
Toyota Motor Sales, U.S.A., Inc., for all of our environmental and
HAZMAT/dangerous goods coordinators based at our parts and
vehicle logistics sites nationwide and other business affiliate
sites. Each Toyota site in North America is staffed with
environmental coordinators. Separate annual conferences are
held for those environmental and HAZMAT/dangerous goods
coordinators at our manufacturing plants.
At this conference, we presented environmental classes, ISO
14001 and HAZMAT/dangerous goods training, team exercises
and presentations. Speakers and presenters included representatives
from our sales organization’s senior management, key suppliers,
other automotive manufacturers, vendors, consultants and
representatives from regulatory agencies such as the U.S. Coast
Guard, U.S. Department of Transportation (including the Federal
Aviation Administration and the Research and Special Projects
Administration) and the U.S. Environmental Protection Agency.
ENVIRONMENTAL TRAINING
Cross-organizational working group sessions were organized to
encourage interaction between coordinators and “learning by
doing.” One exercise included a disaster simulation in which each
team had to make decisions about how to handle the situation
and analyze whether their environmental management system
was working well or needed improvement.
In FY2003, our sales operations and corporate environmental
staff completed 41 facility environmental and HAZMAT/
dangerous goods compliance audits, in addition to the
various government agency inspections that occurred.
page twenty
TOYOTA N ORTH A MERICA
E NVIRONMENTAL R EPORT 2002
page twenty-one
E NVIRONMENTAL M ANAGEMENT
“We are doing our part as a good corporate citizen
by developing environmentally advanced vehicles
with high mileage and low emissions to combat
air pollution.”
— Yukitoshi Funo, President and Chief Executive Officer,
Toyota Motor Sales, U.S.A., Inc.
Team Leaders Mike McMeans and Doug Weeks check
data during a compliance review at Toyota Motor
Manufacturing, Alabama, Inc., Huntsville, Alabama.
As is the case throughout Toyota, manufacturing devoted a
significant number of man-hours to training. Some examples
of the types of training provided to employees include:
• New team member environmental
orientation training;
COMPLIANCE, AUDITS AND TRAINING
Environmental excellence begins with compliance to
applicable local, state and federal regulations. Leadership
requires a company to go beyond compliance. As standard
practice, Toyota seeks to have a record of zero violations.
We also conduct regular due diligence audits and compliance
training across our operations.
Toyota considers regulatory compliance a fundamental
business requirement of the highest priority for all operations.
We achieved our targets of zero violations for applicable
regulations pertaining to hazardous materials, referred to
as HAZMAT in the United States, and called “dangerous
goods” in Canada. This represents a record of five years
with no HAZMAT/dangerous goods violations.
However, in facilities operations in FY2003, Toyota received
three notices of violation, resulting in $5,000 in regulatory
penalties collectively, as well as a few minor violations
that did not warrant any penalties. While Toyota takes
any issue of non-compliance very seriously, it is important
to note that these violations were immediately corrected
and were primarily for administrative matters that have
no adverse impact on the environment. Nevertheless,
Toyota is reviewing current control measures to evaluate
if improvements can be made in order to eliminate all
instances of non-compliance.
• ISO 14001 General Awareness training to assist
team members with their understanding of
environmental management procedures;
• Due diligence auditing procedures to assist team
members in auditing of potential recyclers waste
management companies;
• Resource Conservation and Recovery Act,
RCRA, training for team members who manage
waste as a normal part of their daily activities;
• Contractor environmental management training
for Toyota new site construction requirements.
In addition to Toyota’s internal training programs, many
team members also take part in specialized training programs
offered by outside companies.
Toyota’s training is not limited to team members of Toyota.
For example, as part of the Green Supplier program, Toyota
Motor Manufacturing, North America, Inc., developed an
ISO 14001 guidance program on CD to assist suppliers in
achieving certification/registration.
We conduct annual, scheduled compliance reviews of our
sales and distribution operations, as well as surprise reviews,
to help them remain in compliance with regulations. If
the facility has been ISO certified/registered they are
subject to an additional, annual ISO conformance review
(see page 43).
In addition to these reviews, we provide our coordinators
with the tools and training needed to support their efforts.
We supplied classroom training for over 400 sales associates
on the following subjects: HAZMAT/dangerous goods
transportation, HAZWASTE disposal, incident and spill
response. We provided this training in conjunction with
site compliance audits.
ENVIRONMENTALLY RELATED LEGAL
SETTLEMENTS AND LIABILITIES
In March 2003, Toyota entered into a Consent Decree with
the U.S. Environmental Protection Agency that ended a
dispute over the certification process concerning the onboard diagnostic systems for MY1996-98 Toyota and Lexus
models. EPA alleged that, in its certification documents,
Toyota had failed to fully disclose certain software conditions
that limit the operation of on-board diagnostic system. EPA
did not allege that such non-compliance materially affected
the level of emissions from the affected vehicles. Toyota
denied that its regulatory submissions were non-compliant.
The Consent Decree can be viewed at: www.epa.gov/
compliance/resources/decrees/civil/caa/toyotacd.pdf.
RISK MANAGEMENT
With any type of manufacturing, spills of raw materials
can occur at any time. At Toyota, our facilities are designed
to contain spills within the confines of specially designed
containment structures. These specially designed structures
have enabled Toyota to avoid contaminating ground water
and soil at its manufacturing sites. While we had no
releases resulting in contamination in FY2003, at one of
our facilities, we are proactively monitoring contamination
caused by a neighboring plant.
2003 ENVIRONMENTAL
COMPLIANCE TRAINING CONFERENCE
In Torrance, California, from February 10 – 13, 2003, we held
our second annual Environmental Compliance Conference at
Toyota Motor Sales, U.S.A., Inc., for all of our environmental and
HAZMAT/dangerous goods coordinators based at our parts and
vehicle logistics sites nationwide and other business affiliate
sites. Each Toyota site in North America is staffed with
environmental coordinators. Separate annual conferences are
held for those environmental and HAZMAT/dangerous goods
coordinators at our manufacturing plants.
At this conference, we presented environmental classes, ISO
14001 and HAZMAT/dangerous goods training, team exercises
and presentations. Speakers and presenters included representatives
from our sales organization’s senior management, key suppliers,
other automotive manufacturers, vendors, consultants and
representatives from regulatory agencies such as the U.S. Coast
Guard, U.S. Department of Transportation (including the Federal
Aviation Administration and the Research and Special Projects
Administration) and the U.S. Environmental Protection Agency.
ENVIRONMENTAL TRAINING
Cross-organizational working group sessions were organized to
encourage interaction between coordinators and “learning by
doing.” One exercise included a disaster simulation in which each
team had to make decisions about how to handle the situation
and analyze whether their environmental management system
was working well or needed improvement.
In FY2003, our sales operations and corporate environmental
staff completed 41 facility environmental and HAZMAT/
dangerous goods compliance audits, in addition to the
various government agency inspections that occurred.
page twenty
TOYOTA N ORTH A MERICA
E NVIRONMENTAL R EPORT 2002
page twenty-one
— Dave Baxter, Vice President,
Toyota Technical Center, U.S.A., Inc.
GOAL: ACHIEVE TOP LEVELS OF FUEL
Figure J
+3%
+4%
+3%
+6%
+6%
+6%
Tundra 4.7L 4A/T 2WD
+3%
Tundra 3.4L M/T 4WD
+7%
+6%
Echo 1.5L M/T
+6%
Echo 1.5L A/T
+7%
Tundra 3.4L M/T 2WD
+12%
1.00
Tacoma 3.4L M/T 2WD
MR2
Land Cruiser 4.7L A/T
0.60
Carolla 1.8L A/T
0.80
4Runner 4.0L A/T 2WD
Toyota invests in research and development
aimed at reducing emissions and improving
fuel economy. We view these investments as
critical — not only to the future of the
environment, but also to the future of our
company and, we believe, the future of the
auto industry.
2002-2003 Fuel Economy Change
1.20
4Runner 4.0L A/T 4WD
Toyota remains committed to leading
the automotive industry in environmental
responsibility through the design and
development of clean and efficient vehicles. Our
commitment is often made difficult by the
complex and sometimes competing priorities of
consumers, shareholders, legislators, regulators
and other groups. Nevertheless, our engineers
continue to focus on developing innovative and
practical technologies.
LX 470 4.7L A/T
DEVELOPMENT
“For the 2004 model year, Toyota improved
both the fuel economy and performance of our
hybrid-electric Prius. Looking forward, we must
continue to deliver both of these attributes in
order to ensure success of hybrid technology
in the broader market.”
Relative Fuel Economy
L IFE C YCLE I
0.40
EFFICIENCY IN ALL VEHICLE CLASSES
Toyota has a strong track record of offering fuel-efficient
vehicles in a broad range of classes. As we have grown to
become the fourth-largest vehicle manufacturer in North
America, the challenge of continuing this leadership has
also grown, driven in part by the expanding product lineup necessary to meet the needs of our customers. Nonetheless,
we were again able to make positive strides in improving
the fuel-efficiency of many of our vehicles.
2002 Model Year
2003 Model Year
NOTE: Data are based on EPA adjusted combined fuel economy rating. Four 2003
model year vehicle configurations — Lexus IS 300 3.0L A5A/T, Toyota Corolla 1.8L
5M/T, Toyota RAV4 2.0L4A/T 4WD and Toyota Tacoma 3.4L 4A/T 4WD — had lower
fuel economy ratings than their 2002 model year counterparts.
Main: Tuan Tran, senior technician, runs an emissions certification test on a 2004 Sienna minivan at the Toyota Technical
Center, in Ann Arbor, Michigan. The Center works closely with the U.S. Environmental Protection Agency to
confirm the emissions performance all Toyota and Lexus cars and trucks sold in North America.
E NVIRONMENTAL R EPORT 2003
page twenty-three
— Dave Baxter, Vice President,
Toyota Technical Center, U.S.A., Inc.
GOAL: ACHIEVE TOP LEVELS OF FUEL
Figure J
+3%
+4%
+3%
+6%
+6%
+6%
Tundra 4.7L 4A/T 2WD
+3%
Tundra 3.4L M/T 4WD
+7%
+6%
Echo 1.5L M/T
+6%
Echo 1.5L A/T
+7%
Tundra 3.4L M/T 2WD
+12%
1.00
Tacoma 3.4L M/T 2WD
MR2
Land Cruiser 4.7L A/T
0.60
Carolla 1.8L A/T
0.80
4Runner 4.0L A/T 2WD
Toyota invests in research and development
aimed at reducing emissions and improving
fuel economy. We view these investments as
critical — not only to the future of the
environment, but also to the future of our
company and, we believe, the future of the
auto industry.
2002-2003 Fuel Economy Change
1.20
4Runner 4.0L A/T 4WD
Toyota remains committed to leading
the automotive industry in environmental
responsibility through the design and
development of clean and efficient vehicles. Our
commitment is often made difficult by the
complex and sometimes competing priorities of
consumers, shareholders, legislators, regulators
and other groups. Nevertheless, our engineers
continue to focus on developing innovative and
practical technologies.
LX 470 4.7L A/T
DEVELOPMENT
“For the 2004 model year, Toyota improved
both the fuel economy and performance of our
hybrid-electric Prius. Looking forward, we must
continue to deliver both of these attributes in
order to ensure success of hybrid technology
in the broader market.”
Relative Fuel Economy
L IFE C YCLE I
0.40
EFFICIENCY IN ALL VEHICLE CLASSES
Toyota has a strong track record of offering fuel-efficient
vehicles in a broad range of classes. As we have grown to
become the fourth-largest vehicle manufacturer in North
America, the challenge of continuing this leadership has
also grown, driven in part by the expanding product lineup necessary to meet the needs of our customers. Nonetheless,
we were again able to make positive strides in improving
the fuel-efficiency of many of our vehicles.
2002 Model Year
2003 Model Year
NOTE: Data are based on EPA adjusted combined fuel economy rating. Four 2003
model year vehicle configurations — Lexus IS 300 3.0L A5A/T, Toyota Corolla 1.8L
5M/T, Toyota RAV4 2.0L4A/T 4WD and Toyota Tacoma 3.4L 4A/T 4WD — had lower
fuel economy ratings than their 2002 model year counterparts.
Main: Tuan Tran, senior technician, runs an emissions certification test on a 2004 Sienna minivan at the Toyota Technical
Center, in Ann Arbor, Michigan. The Center works closely with the U.S. Environmental Protection Agency to
confirm the emissions performance all Toyota and Lexus cars and trucks sold in North America.
E NVIRONMENTAL R EPORT 2003
page twenty-three
L IFE C YCLE I
U.S. Car Corporate Average Fuel Economy, or CAFE
Toyota Gasoline Vehicles Are Among the Most Fuel Efficient in Their Class
40 Figure K
34
Higher numbers indicate better performance
Figure L
35
32
30
30
mpg
mpg
25
20
28
Sport Utility
Vechicle
26
Minivan
Standard Pick Up
Mid Size Wagon
Small Wagon
Large Car
Midsize Car
Compact Car
Subcompact Car
5
Two-Seat Car
10
Minicompact Car
15
24
Model Year
1994
1995
1996
1997
1998
1999
Toyota Car Fleet
2000
2001
Industry Average
2002
2003
Projected
Passenger Car CAFE Standard
0
Industry High
Industry Low
U.S. Truck Corporate Average Fuel Economy, or CAFE
Toyota Best Model
30
NOTE United States only: Data and classes are based on EPA Adjusted Combined Fuel Economy ratings from the Model Year 2003 Fuel
Economy Guide available at www.fueleconomy.gov. Diesel and hybrid-electric vehicles are excluded. The chart shows only those classes
where Toyota offers products. The minicompact car model shown is the Lexus SC430 — a luxury coupe with an efficient V-8 engine. The
mid-size wagon shown is the Lexus RX 300, which generally competes in the market with vehicles classified by other manufacturers as SUVs.
Higher numbers indicate better performance
Figure M
26
As we work to improve fuel economy, we also must provide
our customers with the performance, size and features
they demand. This requires a delicate and often difficult
balancing of consumer, marketplace and environmental
needs. For example, four 2003 vehicle configurations had
lower fuel economy than the previous model year. In
other instances, such as the completely redesigned 2003
Toyota 4Runner, we were able to achieve a larger, more
powerful engine and increased interior volume over
the previous generation while achieving a 12 percent
improvement in fuel economy.
Our customers have diverse needs and preferences when
it comes to purchasing a new vehicle. Some require hauling
and/or towing capacity, others seek luxury and performance
and still others desire seating capacity for families and
children. Our goal of being the leader of fuel-efficient
models within each vehicle class will allow our customers
to have an opportunity to select the most fuel-efficient
model that still meets their needs.
page twenty-four
As shown in Figure K, Toyota offers conventional gasolinepowered vehicles that are among the most fuel efficient
in their class. The 2003 Model Year Fuel Economy Guide,
published jointly by the U.S. Environmental Protection
Agency and the U.S. Department of Energy, rated three
2003 Toyota models — Prius, RAV4 2WD manual
transmission, and RAV4 2WD automatic transmission —
as class fuel economy leaders based on EPA fuel economy
mileage estimates. In addition, the EnerGuide, published
by Natural Resources Canada, ranks three 2003 Toyota
models as most fuel-efficient — Prius, Celica automatic
transmission and Corolla Matrix manual transmission.
While there is no formal fuel-economy program in Mexico
analogous to those in the United States and Canada, Toyota’s
policy is to introduce the same top-level vehicles into
Mexico as it does in the other North American markets.
We have improved fuel economy by applying technologies
such as variable valve timing, four-valve cylinder heads
and five-speed automatic transmissions, to name a few.
In addition, we have consistently applied advanced
technologies sooner and in greater volumes than most
of our competitors. While these actions set Toyota apart,
we now have relatively fewer options available to further
improve fuel-efficiency compared to our competitors.
Nevertheless, we will continue our ongoing efforts to
expand the use of leading technologies and develop the
next generation of advanced environmental vehicles.
TOYOTA N ORTH A MERICA
22
mpg
In the 2003 model year, Toyota produced vehicles representing
68 different model and powertrain configurations. Of these,
we improved the rated fuel economy on 12 configurations
(Figure J on page 23), while the rated fuel economy of 52
configurations remained the same.
18
14
10
Model Year
1994
1995
1996
1997
Toyota Truck Fleet
1998
1999
Industry Average
TARGET: EXCEED CAFE/CAFC REQUIREMENTS
FOR PASSENGERS AND LIGHT-DUT Y TRUCKS
In the United States, automobile manufacturers are required
to comply with Corporate Average Fuel Economy, or CAFE,
standards for passenger cars and light trucks. CAFE standards
are expressed in miles per U.S. gallon; the higher the
number the better the fuel economy.
In Canada, Toyota has joined with other manufacturers
in agreeing to meet voluntary Corporate Average Fuel
Consumption, or CAFC, limits. CAFC limits are expressed
in liters of fuel burned per 100 kilometers traveled; the
lower the number the better the fuel economy.
E NVIRONMENTAL R EPORT 2003
2000
2001
2002
2003
Projected
NOTE: 2003MY Toyota
data are projected based
on mid-model year CAFE
estimates reported to the
National Highway Traffic
Safety Administration.
2003MY industry estimate
is projected by the
National Highway Traffic
Safety Administration.
Non-Passenger Car (Truck) CAFE Standard
For the 2003 model year, Toyota will meet our target to
exceed CAFE standards and CAFC voluntary limits for
both passenger cars and light-duty trucks (Figures L
through O).
In both the United States and Canada, our performance
continues to exceed the industry as a whole. However, in
recent years, consumers of both regions have displayed a
growing preference for more and larger trucks. Toyota’s
product offerings have expanded to keep pace with this
demand. We recognize that with increased truck sales comes
the need to develop increasingly efficient technologies to
minimize environmental impacts. As discussed later in this
chapter, Toyota plans to introduce an advanced-technology
hybrid sport utility vehicle into our fleet in the near future.
page twenty-five
L IFE C YCLE I
U.S. Car Corporate Average Fuel Economy, or CAFE
Toyota Gasoline Vehicles Are Among the Most Fuel Efficient in Their Class
40 Figure K
34
Higher numbers indicate better performance
Figure L
35
32
30
30
mpg
mpg
25
20
28
Sport Utility
Vechicle
26
Minivan
Standard Pick Up
Mid Size Wagon
Small Wagon
Large Car
Midsize Car
Compact Car
Subcompact Car
5
Two-Seat Car
10
Minicompact Car
15
24
Model Year
1994
1995
1996
1997
1998
1999
Toyota Car Fleet
2000
2001
Industry Average
2002
2003
Projected
Passenger Car CAFE Standard
0
Industry High
Industry Low
U.S. Truck Corporate Average Fuel Economy, or CAFE
Toyota Best Model
30
NOTE United States only: Data and classes are based on EPA Adjusted Combined Fuel Economy ratings from the Model Year 2003 Fuel
Economy Guide available at www.fueleconomy.gov. Diesel and hybrid-electric vehicles are excluded. The chart shows only those classes
where Toyota offers products. The minicompact car model shown is the Lexus SC430 — a luxury coupe with an efficient V-8 engine. The
mid-size wagon shown is the Lexus RX 300, which generally competes in the market with vehicles classified by other manufacturers as SUVs.
Higher numbers indicate better performance
Figure M
26
As we work to improve fuel economy, we also must provide
our customers with the performance, size and features
they demand. This requires a delicate and often difficult
balancing of consumer, marketplace and environmental
needs. For example, four 2003 vehicle configurations had
lower fuel economy than the previous model year. In
other instances, such as the completely redesigned 2003
Toyota 4Runner, we were able to achieve a larger, more
powerful engine and increased interior volume over
the previous generation while achieving a 12 percent
improvement in fuel economy.
Our customers have diverse needs and preferences when
it comes to purchasing a new vehicle. Some require hauling
and/or towing capacity, others seek luxury and performance
and still others desire seating capacity for families and
children. Our goal of being the leader of fuel-efficient
models within each vehicle class will allow our customers
to have an opportunity to select the most fuel-efficient
model that still meets their needs.
page twenty-four
As shown in Figure K, Toyota offers conventional gasolinepowered vehicles that are among the most fuel efficient
in their class. The 2003 Model Year Fuel Economy Guide,
published jointly by the U.S. Environmental Protection
Agency and the U.S. Department of Energy, rated three
2003 Toyota models — Prius, RAV4 2WD manual
transmission, and RAV4 2WD automatic transmission —
as class fuel economy leaders based on EPA fuel economy
mileage estimates. In addition, the EnerGuide, published
by Natural Resources Canada, ranks three 2003 Toyota
models as most fuel-efficient — Prius, Celica automatic
transmission and Corolla Matrix manual transmission.
While there is no formal fuel-economy program in Mexico
analogous to those in the United States and Canada, Toyota’s
policy is to introduce the same top-level vehicles into
Mexico as it does in the other North American markets.
We have improved fuel economy by applying technologies
such as variable valve timing, four-valve cylinder heads
and five-speed automatic transmissions, to name a few.
In addition, we have consistently applied advanced
technologies sooner and in greater volumes than most
of our competitors. While these actions set Toyota apart,
we now have relatively fewer options available to further
improve fuel-efficiency compared to our competitors.
Nevertheless, we will continue our ongoing efforts to
expand the use of leading technologies and develop the
next generation of advanced environmental vehicles.
TOYOTA N ORTH A MERICA
22
mpg
In the 2003 model year, Toyota produced vehicles representing
68 different model and powertrain configurations. Of these,
we improved the rated fuel economy on 12 configurations
(Figure J on page 23), while the rated fuel economy of 52
configurations remained the same.
18
14
10
Model Year
1994
1995
1996
1997
Toyota Truck Fleet
1998
1999
Industry Average
TARGET: EXCEED CAFE/CAFC REQUIREMENTS
FOR PASSENGERS AND LIGHT-DUT Y TRUCKS
In the United States, automobile manufacturers are required
to comply with Corporate Average Fuel Economy, or CAFE,
standards for passenger cars and light trucks. CAFE standards
are expressed in miles per U.S. gallon; the higher the
number the better the fuel economy.
In Canada, Toyota has joined with other manufacturers
in agreeing to meet voluntary Corporate Average Fuel
Consumption, or CAFC, limits. CAFC limits are expressed
in liters of fuel burned per 100 kilometers traveled; the
lower the number the better the fuel economy.
E NVIRONMENTAL R EPORT 2003
2000
2001
2002
2003
Projected
NOTE: 2003MY Toyota
data are projected based
on mid-model year CAFE
estimates reported to the
National Highway Traffic
Safety Administration.
2003MY industry estimate
is projected by the
National Highway Traffic
Safety Administration.
Non-Passenger Car (Truck) CAFE Standard
For the 2003 model year, Toyota will meet our target to
exceed CAFE standards and CAFC voluntary limits for
both passenger cars and light-duty trucks (Figures L
through O).
In both the United States and Canada, our performance
continues to exceed the industry as a whole. However, in
recent years, consumers of both regions have displayed a
growing preference for more and larger trucks. Toyota’s
product offerings have expanded to keep pace with this
demand. We recognize that with increased truck sales comes
the need to develop increasingly efficient technologies to
minimize environmental impacts. As discussed later in this
chapter, Toyota plans to introduce an advanced-technology
hybrid sport utility vehicle into our fleet in the near future.
page twenty-five
L IFE C YCLE I
Canadian Car Company Average Fuel Consumption, or CAFC
9.0
Lower numbers indicate better performance
Figure N
8.5
HYDROCARBON ABSORBING CARBON FILTER
Figure P
8.0
Air Cleaner Case
L/100 Km
7.5
7.0
Carbon Filter
6.5
Resonator
6.0
Air Cleaner Inlet
In 2003, Toyota introduced the California-specification
Camry to meet the California Air Resources Board’s new
Partial Zero Emission Vehicle requirements for 2004.
Under these requirements:
5.5
5.0
Model Year
1994
1995
1996
1997
1998
Toyota Car Fleet
1999
2000
Industry Average
2001
2002
2003
Projected
Passenger Car CAFC Voluntary Goal
• Tailpipe emissions must meet Super Ultra Low
Emission Vehicle regulations for the full useful
life of the vehicle (15 years/150,000 miles);
Canadian Truck Company Average Fuel Consumption, or CAFC
12.0
Figure O
Lower numbers indicate better performance
11.5
• The fuel system must meet zero evaporative
emissions standards defined as less than
.054 grams/test.
L/100 Km
11.0
In order to meet these more stringent requirements,
we incorporated many technical enhancements to the
vehicle. The enhancements include:
10.5
10.0
9.5
9.0
Model Year
1994
1995
1996
1997
1998
Toyota Car Fleet
1999
2000
Industry Average
2001
2002
2003
Projected
NOTE: 2003MY Toyota
data are projected
based on CAFC
estimates reported to
Transport Canada. The
2003MY industry
estimates are projected
by Transport Canada.
Light Truck CAFC Voluntary Goal
GOAL: PROMOTE EMISSIONS REDUCTION
TARGET: MEET TIER 2 AND LEV II EMISSION
Regulatory organizations around the world, including
the U.S. Environmental Protection Agency, the California
Air Resources Board and Environment Canada have
challenged automakers to reduce levels of harmful emissions
emitted by automobiles during normal operations.
REQUIREMENTS
We are on course to meet stringent Environment Canada,
EPA Tier 2 and California Air Resources Board Low
Emission Vehicle phase-two emission requirements,
on a fleet average basis.
In model year 2003, we introduced three new models —
Lexus GX 470*, Toyota Corolla Matrix and the redesigned
Toyota 4Runner with a new 4.0L V-6 engine. Each of
these vehicles (except the Corolla Matrix XRS) is certified
to meet Low Emission Vehicle or better standards.
• Incorporation of a carbon filter into the air cleaner
to absorb hydrocarbons when the engine is stopped;
• Adoption of the Toyota hydrocarbon absorbtive
catalyst to assist with hydrocarbon control,
particularly during cold engine operation;
• Addition of an intake valve-runner assembly
to improve combustion efficiency;
• Incorporation of three sensors into the exhaust
system, upgrades to the design and material
content of the evaporative emission control
system, and enhancements to the three-way
catalytic converter design.
Air Cleaner Element
(Nonwoven Full-Fabric)
Resonator
The 2003 Partial Zero Emission Vehicle Toyota
utilizes a carbon filter to absorb hydrocarbons
that could otherwise escape when the engine
is shut-down.
GOAL: INTRODUCE CLEANER ENERGY VEHICLES
Looking beyond today’s gasoline-powered vehicles, the
key to energy efficient transportation will be to develop
automobiles using advanced technologies. Toyota is
committed to pursuing a variety of these advanced
technologies as part of its overall product environmental
strategy and in pursuit of the “ultimate ECO car.”
Clearly demonstrating this commitment, Toyota’s
cumulative global sales of the Prius hybrid sedan have
topped 120,000 units as of June 2003, with 46 percent of
those sales in North America. And that number is growing;
for example, in 2002, 72 percent of worldwide Prius sales
were in North America, and Prius is the best-selling
hybrid in North America. It is now available in more than
20 countries, contributing directly and substantially to
fuel economy and reduction of greenhouse gases.
Toyota is on track for 2003MY vehicles to comply with
the phase-in for the U.S. Environmental Protection Agency’s
Supplemental Federal Test Procedure requirements, which
represent enhanced emission control while operating the
vehicle over a more severe drive cycle. Our passenger cars
and light-duty trucks meet the 85 percent phase-in
requirement, while 100 percent of our 2003MY heavy
light-duty trucks meet the phase-in, compared to the
required 80 percent for this category.
*In the United States only
page twenty-six
TOYOTA N ORTH A MERICA
E NVIRONMENTAL R EPORT 2003
page twenty-seven
L IFE C YCLE I
Canadian Car Company Average Fuel Consumption, or CAFC
9.0
Lower numbers indicate better performance
Figure N
8.5
HYDROCARBON ABSORBING CARBON FILTER
Figure P
8.0
Air Cleaner Case
L/100 Km
7.5
7.0
Carbon Filter
6.5
Resonator
6.0
Air Cleaner Inlet
In 2003, Toyota introduced the California-specification
Camry to meet the California Air Resources Board’s new
Partial Zero Emission Vehicle requirements for 2004.
Under these requirements:
5.5
5.0
Model Year
1994
1995
1996
1997
1998
Toyota Car Fleet
1999
2000
Industry Average
2001
2002
2003
Projected
Passenger Car CAFC Voluntary Goal
• Tailpipe emissions must meet Super Ultra Low
Emission Vehicle regulations for the full useful
life of the vehicle (15 years/150,000 miles);
Canadian Truck Company Average Fuel Consumption, or CAFC
12.0
Figure O
Lower numbers indicate better performance
11.5
• The fuel system must meet zero evaporative
emissions standards defined as less than
.054 grams/test.
L/100 Km
11.0
In order to meet these more stringent requirements,
we incorporated many technical enhancements to the
vehicle. The enhancements include:
10.5
10.0
9.5
9.0
Model Year
1994
1995
1996
1997
1998
Toyota Car Fleet
1999
2000
Industry Average
2001
2002
2003
Projected
NOTE: 2003MY Toyota
data are projected
based on CAFC
estimates reported to
Transport Canada. The
2003MY industry
estimates are projected
by Transport Canada.
Light Truck CAFC Voluntary Goal
GOAL: PROMOTE EMISSIONS REDUCTION
TARGET: MEET TIER 2 AND LEV II EMISSION
Regulatory organizations around the world, including
the U.S. Environmental Protection Agency, the California
Air Resources Board and Environment Canada have
challenged automakers to reduce levels of harmful emissions
emitted by automobiles during normal operations.
REQUIREMENTS
We are on course to meet stringent Environment Canada,
EPA Tier 2 and California Air Resources Board Low
Emission Vehicle phase-two emission requirements,
on a fleet average basis.
In model year 2003, we introduced three new models —
Lexus GX 470*, Toyota Corolla Matrix and the redesigned
Toyota 4Runner with a new 4.0L V-6 engine. Each of
these vehicles (except the Corolla Matrix XRS) is certified
to meet Low Emission Vehicle or better standards.
• Incorporation of a carbon filter into the air cleaner
to absorb hydrocarbons when the engine is stopped;
• Adoption of the Toyota hydrocarbon absorbtive
catalyst to assist with hydrocarbon control,
particularly during cold engine operation;
• Addition of an intake valve-runner assembly
to improve combustion efficiency;
• Incorporation of three sensors into the exhaust
system, upgrades to the design and material
content of the evaporative emission control
system, and enhancements to the three-way
catalytic converter design.
Air Cleaner Element
(Nonwoven Full-Fabric)
Resonator
The 2003 Partial Zero Emission Vehicle Toyota
utilizes a carbon filter to absorb hydrocarbons
that could otherwise escape when the engine
is shut-down.
GOAL: INTRODUCE CLEANER ENERGY VEHICLES
Looking beyond today’s gasoline-powered vehicles, the
key to energy efficient transportation will be to develop
automobiles using advanced technologies. Toyota is
committed to pursuing a variety of these advanced
technologies as part of its overall product environmental
strategy and in pursuit of the “ultimate ECO car.”
Clearly demonstrating this commitment, Toyota’s
cumulative global sales of the Prius hybrid sedan have
topped 120,000 units as of June 2003, with 46 percent of
those sales in North America. And that number is growing;
for example, in 2002, 72 percent of worldwide Prius sales
were in North America, and Prius is the best-selling
hybrid in North America. It is now available in more than
20 countries, contributing directly and substantially to
fuel economy and reduction of greenhouse gases.
Toyota is on track for 2003MY vehicles to comply with
the phase-in for the U.S. Environmental Protection Agency’s
Supplemental Federal Test Procedure requirements, which
represent enhanced emission control while operating the
vehicle over a more severe drive cycle. Our passenger cars
and light-duty trucks meet the 85 percent phase-in
requirement, while 100 percent of our 2003MY heavy
light-duty trucks meet the phase-in, compared to the
required 80 percent for this category.
*In the United States only
page twenty-six
TOYOTA N ORTH A MERICA
E NVIRONMENTAL R EPORT 2003
page twenty-seven
L IFE C YCLE I
“Toyota is leading the way in products that are
gentler to our Earth and provide performance and
power that customers want and demand…and we’re
doing it today, not some time in the distant future.”
— Jim Press
Executive Vice President, Toyota Motor Sales, U.S.A., Inc.
TARGET: INTRODUCE ADDITIONAL NEW
LEXUS RX HYBRID
HYBRID ELECTRIC VEHICLES BY 2005
Toyota currently stands as the clear leader in hybrid
vehicle sales in North America, with over 50,000 units
sold as of July 2003. During this past year, we reached
several significant milestones on the way to that target,
and made a number of announcements for hybrid vehicles.
At the 2003 North American International Auto Show in
Detroit, Michigan, Toyota announced plans to offer our
first-ever sport utility hybrid vehicle — the new Lexus
RX Hybrid. The RX Hybrid will be available beginning
with the 2005 model year, and will operate with front,
standard and optional all-wheel drive rear electric motors
combined with a V6 gasoline engine. It will combine the
power and torque of a V8 with the fuel economy of a
compact car, all while producing a fraction of the
emissions of a standard SUV. It will also provide the
benefits of all-wheel drive.
We strongly believe that environmentally friendly technologies
should be widely available and that cooperation between
competitive manufacturers will be necessary. We recently
announced a long-term agreement with Nissan Motor
Corporation that includes supplying hybrid components
and technical cooperation between our two companies.
Both companies agreed to begin exchanging information
and discussing joint development of components related
to hybrid systems. Beginning in 2006, and as a first step,
Nissan will install selected components from Toyota’s
hybrid system, including the transaxle and inverter, in
Nissan vehicles to be sold in the United States.
NEW HYBRID PRODUCTS
This year, Toyota completed development of our secondgeneration hybrid system, called Hybrid Synergy Drive.
The new system features a high-voltage power circuit
combined with a more powerful and efficient electric
motor, offering greater power, performance and fuel
economy compared to our previous hybrid system. We
also announced the upcoming sales of two vehicles that
will use this system.
page twenty-eight
The 2004 Prius features advanced energy-saving features,
including new body styling with a very low 0.26 coefficient
of drag and a new air conditioning system that draws
power from an electric motor rather than the traditional
method of an engine belt and pulley.
Toyota believes that hybrid technology, especially as
represented by our new Hybrid Synergy Drive system,
is key to energy-efficient transportation, with immediate
benefits for the environment and consumers. Today’s
hybrids also give us a learning lab for future hybrid
vehicles, including those that will employ fuel cells.
TOYOTA PRIUS
At the 2003 New York Auto Show, Toyota introduced the
all-new 2004 Toyota Prius featuring the Hybrid Synergy
Drive™. The vehicle has been reclassified from a compact
to a midsize sedan. With additional power, and improved
low-end torque from the drive motor, the new Prius’
acceleration is significantly improved over its predecessor
(see Figure Q).
Not only have we enlarged the Prius and improved its
performance, but we also improved the EPA-rated fuel
economy from the high 40s to the mid-50s in terms
of miles per gallon. In Canada, fuel consumption — the
inverse of fuel economy — has been improved from the
high to the low fours in terms of litres per 100 kilometers.
This improvement gives Prius the best fuel economy rating
of any mid-size vehicle sold in North America, delivering
twice the combined mileage rating of its closest competitor.
In fact, the midsize Prius boasts a higher combined
mileage rating than even the most fuel-efficient compact
sedan sold in North America.
TOYOTA N ORTH A MERICA
* Advanced Technology Partial Zero Emission Vehicle requirements include
meeting a stringent fuel evaporative standard, super low tailpipe emissions,
150,000-mile durability and an extended emissions system warranty.
Figure Q
2003 Prius
with THS
2004 Prius
with HSD
0
5
10
Seconds
E NVIRONMENTAL R EPORT 2003
TARGET: DEMONSTRATE FUEL-CELL
TECHNOLOGY BY EVALUATING PROTOT YPE
BEGINNING IN 2001
Toyota continues to make significant progress in the
development, evaluation and refinement of fuel-cellpowered vehicles. Our engineers have focused on independent
development of a Toyota-proprietary fuel-cell system that
sets new standards for efficiency by using the same hybrid
systems found in the Prius.
At this time, our primary fuel-cell-powered vehicle is the
Fuel Cell Hybrid Vehicle, based on the Toyota Highlander
sport utility vehicle platform. It features four 5,000-psi
hydrogen fuel tanks. Hydrogen gas feeds into the Toyota
fuel-cell stack where it combines with oxygen, generating
a peak of 90 kW of electricity. Electricity from the fuel
cell powers a 109-hp (194 lbs-ft of torque) electric motor
and also charges the vehicle’s nickel-metal hydride batteries.
These batteries feed power-on-demand to the electric
motor in addition to the power supplied by the fuel-cell.
Water vapor is emitted through the vehicle’s tailpipe.
The Toyota Fuel Cell Hybrid Vehicle is an evolution of the
FCHV-4 hydrogen fuel-cell vehicle, which has undergone
18 months of real-world testing in California and Japan,
logging more than 80,000 miles of evaluation on test
tracks and public highways.
Prius Acceleration 2003 vs. 2004
0 - 100 km/h Acceleration
COOPERATIVE DEVELOPMENT
Regarding emissions, the 2004 Prius is certified as an
Advanced Technology Partial Zero Emission Vehicle* in
California and states adopting California standards, and
as Tier 2, Bin 3 in the rest of the United States and in
Canada (see www.epa.gov/otaq/tr2home.htm for a
description of the Tier 2 emission program).
15
Much of this real-world evaluation was conducted in
conjunction with the California Fuel Cell Partnership
project, in which Toyota has been a member since 2000.
The FCHV-4 vehicle has also gone through rigorous crash
testing during its pre-market evaluation. During that time
the vehicle’s hydrogen fuel system has proven to be
reliable, safe, durable and easy to use.
page twenty-nine
L IFE C YCLE I
“Toyota is leading the way in products that are
gentler to our Earth and provide performance and
power that customers want and demand…and we’re
doing it today, not some time in the distant future.”
— Jim Press
Executive Vice President, Toyota Motor Sales, U.S.A., Inc.
TARGET: INTRODUCE ADDITIONAL NEW
LEXUS RX HYBRID
HYBRID ELECTRIC VEHICLES BY 2005
Toyota currently stands as the clear leader in hybrid
vehicle sales in North America, with over 50,000 units
sold as of July 2003. During this past year, we reached
several significant milestones on the way to that target,
and made a number of announcements for hybrid vehicles.
At the 2003 North American International Auto Show in
Detroit, Michigan, Toyota announced plans to offer our
first-ever sport utility hybrid vehicle — the new Lexus
RX Hybrid. The RX Hybrid will be available beginning
with the 2005 model year, and will operate with front,
standard and optional all-wheel drive rear electric motors
combined with a V6 gasoline engine. It will combine the
power and torque of a V8 with the fuel economy of a
compact car, all while producing a fraction of the
emissions of a standard SUV. It will also provide the
benefits of all-wheel drive.
We strongly believe that environmentally friendly technologies
should be widely available and that cooperation between
competitive manufacturers will be necessary. We recently
announced a long-term agreement with Nissan Motor
Corporation that includes supplying hybrid components
and technical cooperation between our two companies.
Both companies agreed to begin exchanging information
and discussing joint development of components related
to hybrid systems. Beginning in 2006, and as a first step,
Nissan will install selected components from Toyota’s
hybrid system, including the transaxle and inverter, in
Nissan vehicles to be sold in the United States.
NEW HYBRID PRODUCTS
This year, Toyota completed development of our secondgeneration hybrid system, called Hybrid Synergy Drive.
The new system features a high-voltage power circuit
combined with a more powerful and efficient electric
motor, offering greater power, performance and fuel
economy compared to our previous hybrid system. We
also announced the upcoming sales of two vehicles that
will use this system.
page twenty-eight
The 2004 Prius features advanced energy-saving features,
including new body styling with a very low 0.26 coefficient
of drag and a new air conditioning system that draws
power from an electric motor rather than the traditional
method of an engine belt and pulley.
Toyota believes that hybrid technology, especially as
represented by our new Hybrid Synergy Drive system,
is key to energy-efficient transportation, with immediate
benefits for the environment and consumers. Today’s
hybrids also give us a learning lab for future hybrid
vehicles, including those that will employ fuel cells.
TOYOTA PRIUS
At the 2003 New York Auto Show, Toyota introduced the
all-new 2004 Toyota Prius featuring the Hybrid Synergy
Drive™. The vehicle has been reclassified from a compact
to a midsize sedan. With additional power, and improved
low-end torque from the drive motor, the new Prius’
acceleration is significantly improved over its predecessor
(see Figure Q).
Not only have we enlarged the Prius and improved its
performance, but we also improved the EPA-rated fuel
economy from the high 40s to the mid-50s in terms
of miles per gallon. In Canada, fuel consumption — the
inverse of fuel economy — has been improved from the
high to the low fours in terms of litres per 100 kilometers.
This improvement gives Prius the best fuel economy rating
of any mid-size vehicle sold in North America, delivering
twice the combined mileage rating of its closest competitor.
In fact, the midsize Prius boasts a higher combined
mileage rating than even the most fuel-efficient compact
sedan sold in North America.
TOYOTA N ORTH A MERICA
* Advanced Technology Partial Zero Emission Vehicle requirements include
meeting a stringent fuel evaporative standard, super low tailpipe emissions,
150,000-mile durability and an extended emissions system warranty.
Figure Q
2003 Prius
with THS
2004 Prius
with HSD
0
5
10
Seconds
E NVIRONMENTAL R EPORT 2003
TARGET: DEMONSTRATE FUEL-CELL
TECHNOLOGY BY EVALUATING PROTOT YPE
BEGINNING IN 2001
Toyota continues to make significant progress in the
development, evaluation and refinement of fuel-cellpowered vehicles. Our engineers have focused on independent
development of a Toyota-proprietary fuel-cell system that
sets new standards for efficiency by using the same hybrid
systems found in the Prius.
At this time, our primary fuel-cell-powered vehicle is the
Fuel Cell Hybrid Vehicle, based on the Toyota Highlander
sport utility vehicle platform. It features four 5,000-psi
hydrogen fuel tanks. Hydrogen gas feeds into the Toyota
fuel-cell stack where it combines with oxygen, generating
a peak of 90 kW of electricity. Electricity from the fuel
cell powers a 109-hp (194 lbs-ft of torque) electric motor
and also charges the vehicle’s nickel-metal hydride batteries.
These batteries feed power-on-demand to the electric
motor in addition to the power supplied by the fuel-cell.
Water vapor is emitted through the vehicle’s tailpipe.
The Toyota Fuel Cell Hybrid Vehicle is an evolution of the
FCHV-4 hydrogen fuel-cell vehicle, which has undergone
18 months of real-world testing in California and Japan,
logging more than 80,000 miles of evaluation on test
tracks and public highways.
Prius Acceleration 2003 vs. 2004
0 - 100 km/h Acceleration
COOPERATIVE DEVELOPMENT
Regarding emissions, the 2004 Prius is certified as an
Advanced Technology Partial Zero Emission Vehicle* in
California and states adopting California standards, and
as Tier 2, Bin 3 in the rest of the United States and in
Canada (see www.epa.gov/otaq/tr2home.htm for a
description of the Tier 2 emission program).
15
Much of this real-world evaluation was conducted in
conjunction with the California Fuel Cell Partnership
project, in which Toyota has been a member since 2000.
The FCHV-4 vehicle has also gone through rigorous crash
testing during its pre-market evaluation. During that time
the vehicle’s hydrogen fuel system has proven to be
reliable, safe, durable and easy to use.
page twenty-nine
L IFE C YCLE I
2003 Model Year Product Data for Selected Models1
Figure R
Fuel Economy2
North
American
Model
On December 2, 2002, Toyota delivered its first two marketready hydrogen fuel-cell vehicles to schools at the forefront
of fuel-cell vehicle research, the University of California,
Irvine, and the University of California, Davis. These two
vehicles are the first of several Toyota Fuel Cell Hybrid
Vehicles to be leased. Toyota will have seven Fuel Cell
Hybrid Vehicles in the U.S. by the end of 2003.
This delivery was the first step in Toyota’s plan to establish
a California fuel-cell “community,” public/private partnerships
comprised of government, business and higher education.
The community will tackle product, infrastructure and
consumer-acceptance challenges. An important aspect of
this plan in northern and southern California is developing
and expanding a hydrogen-refueling infrastructure.
Transmission
City
Emission Standard
Highway
MPG-U.S.
MPG-U.S.
l/100 km-Canada l/100 km-Canada
Toyota Prius
(U.S. & Canada
Only)
1.5 L
Toyota
RAV4 2WD
2.0 L
Federal
California
Notes
See Note 3
52 mpg
4.3 l/100km
45 mpg
4.7 l/100km
ULEV
SULEV
2003 Model Year EPA/DOT Fuel
Economy Guide leader among
compact cars and 2003 Natural
Resources Canada EnerGuide
most fuel-efficient vehicle.
5M/T
25 mpg
31 mpg
LEV
LEV
2003 Model Year EPA/DOT Fuel
Economy Guide leader among
M/T SUVs
4A/T
24 mpg
29 mpg
LEV
LEV
2003 Model Year EPA/DOT Fuel
Economy Guide leader among
A/T SUVs
4A/T
2WD
18 mpg
21mpg
LEV
LEV
4.0 L
4A/T
4WD
17 mpg
13.7 l/100km
21 mpg
10.7 l/100km
LEV
LEV
4.7 L
5A/T
2WD
16 mpg
20 mpg
LEV
LEV
Torrance, California. Supplied by our partner, Stuart Energy, this
station uses electrolysis to turn plain tap water into oxygen and
5A/T
4WD
15 mpg
15.5 l/100km
19 mpg
11.5 l/100km
LEV
LEV
5A/T
15 mpg
18 mpg
LEV
LEV
New model for 2003
4A/T
4WD
26 mpg
9.1 l/100km
31 mpg
6.9 l/100km
LEV
LEV
4A/T
2WD
33 mpg
6.5 l/100km
LEV
LEV
5M/T
2WD
28 mpg
8.3 l/100km
29 mpg
7.7 l/100km
2003 Natural Resources
Canada EnerGuide most fuel-efficient
vehicle. New model for 2003.
36 mpg
6.0 l/100km
ULEV
ULEV
6M/T
2WD
25 mpg
9.3 l/100km
30 mpg
7.1 l/100km
ULEV
ULEV
4A/T
2WD
26 mpg
9.1 l/100km
30 mpg
7.2 l/100km
TLEV
TLEV
TOYOTA’S FIRST HYDROGEN FUELING STATION
We have completed construction of our first hydrogen fueling
station at our U.S. corporate sales headquarters complex in
hydrogen. The electricity is generated from renewable sources,
making this a carbon-free fuel source. A common infrastructure
support system is important for fuel-cell technology to reach its
fruition. Toyota is committed to working with other members of
the global auto industry to reach this goal.
Toyota 4Runner
(U.S. & Mexico)
(Canada
4WD only)
Lexus
GX 470
(U.S.
only)
4.7 L
Toyota Corolla,
Matrix (U.S.,
Canada &
Mexico)
1.8 L
Working with the California Air Resources Board and the
South Coast Air Quality Management District, as well as
corporations such as Stuart Energy and Air Products, the
model-communities will have a network of six refueling
stations — including the new station at Toyota Motor Sales
national headquarters. With a current maximum range of
approximately 180 miles, the southern fleet of Toyota Fuel
Cell Hybrid Vehicles will have a driving range that covers
most of Los Angeles and Orange Counties.
1.8 L
6M/T
25 mpg
33 mpg
LEV
LEV
New 6M/T transmission
offering for 2003
Toyota Celica
(U.S. & Canada
only)
1.8 L
4 A/T
29 mpg
8.3 l/100km
36 mpg
6.0 l/100km
LEV
LEV
2003 Natural Resources
Canada EnerGuide
most fuel-efficient vehicle.
Vehicle
Category
NMOG
(g/mile)
CO
(g/mile)
ZEV
ALL
0.000
SULEV
Passenger Car
& LDT1
Passenger Car
& LDT1
MDT
0.010
NOx
(g/mile)
HCOH
(g/mile)
0.0
0.0
0.000
1.0
0.02
0.004
0.040
1.7
0.20
0.008
0.117
5.0
0.60
0.011
Passenger Car
& LDT1
0.075
3.4
0.20
0.015
LEV
LDT2
0.100
4.4
0.40
0.018
0.195
5.0
0.60
0.022
TLEV
MDV
Passenger Car
& LDT1
0.125
3.4
0.40
0.015
TIER1
MDV
0.390
5.0
1.10
0.022
ULEV
TOYOTA N ORTH A MERICA
4Runner redesigned for 2003.
New 4.0L and 4.7L engine offerings.
Toyota MR2
(U.S. only)
Certification
Standard
page thirty
Engine
E NVIRONMENTAL R EPORT 2002
Notes:
1. This chart shows 2003 models that are new, redesigned, or have new powertrain options;
and models that were identified in the U.S. EPA/DOT 2003 Model Year Fuel Economy Guide
or the Natural Resources Canada EnerGuide as class fuel economy leaders.
2. Fuel economy estimates are determined by averaging numbers gathered through tests
conducted by the U.S. EPA and Environment Canada. Vehicles are tested in a controlled
setting, and the results are adjusted to suit real-world driving conditions. The fuel economy
ratings for the United States and the fuel consumption ratings for Canada may not be equal
when converted to the same units. The test cycles and correction factors used in generating
these ratings take into account the aerodynamic efficiency, weight, rolling resistance and
drive mode of different vehicles. Other adjustments are made to reflect the average fuel
consumption of vehicle models that offer different configurations/options, based on their
sales mix in each country. These averaging steps may lead to slightly different ratings in
Canada and the United States based on differences in vehicle sales by class and configuration.
In addition, U.S. ratings data will also differ from Canadian ratings data, as the U.S. gallon is
smaller than the imperial gallon used in Canada.
3.
Prius does not have a traditional automatic or manual transmission.
page thirty-one
L IFE C YCLE I
2003 Model Year Product Data for Selected Models1
Figure R
Fuel Economy2
North
American
Model
On December 2, 2002, Toyota delivered its first two marketready hydrogen fuel-cell vehicles to schools at the forefront
of fuel-cell vehicle research, the University of California,
Irvine, and the University of California, Davis. These two
vehicles are the first of several Toyota Fuel Cell Hybrid
Vehicles to be leased. Toyota will have seven Fuel Cell
Hybrid Vehicles in the U.S. by the end of 2003.
This delivery was the first step in Toyota’s plan to establish
a California fuel-cell “community,” public/private partnerships
comprised of government, business and higher education.
The community will tackle product, infrastructure and
consumer-acceptance challenges. An important aspect of
this plan in northern and southern California is developing
and expanding a hydrogen-refueling infrastructure.
Transmission
City
Emission Standard
Highway
MPG-U.S.
MPG-U.S.
l/100 km-Canada l/100 km-Canada
Toyota Prius
(U.S. & Canada
Only)
1.5 L
Toyota
RAV4 2WD
2.0 L
Federal
California
Notes
See Note 3
52 mpg
4.3 l/100km
45 mpg
4.7 l/100km
ULEV
SULEV
2003 Model Year EPA/DOT Fuel
Economy Guide leader among
compact cars and 2003 Natural
Resources Canada EnerGuide
most fuel-efficient vehicle.
5M/T
25 mpg
31 mpg
LEV
LEV
2003 Model Year EPA/DOT Fuel
Economy Guide leader among
M/T SUVs
4A/T
24 mpg
29 mpg
LEV
LEV
2003 Model Year EPA/DOT Fuel
Economy Guide leader among
A/T SUVs
4A/T
2WD
18 mpg
21mpg
LEV
LEV
4.0 L
4A/T
4WD
17 mpg
13.7 l/100km
21 mpg
10.7 l/100km
LEV
LEV
4.7 L
5A/T
2WD
16 mpg
20 mpg
LEV
LEV
Torrance, California. Supplied by our partner, Stuart Energy, this
station uses electrolysis to turn plain tap water into oxygen and
5A/T
4WD
15 mpg
15.5 l/100km
19 mpg
11.5 l/100km
LEV
LEV
5A/T
15 mpg
18 mpg
LEV
LEV
New model for 2003
4A/T
4WD
26 mpg
9.1 l/100km
31 mpg
6.9 l/100km
LEV
LEV
4A/T
2WD
33 mpg
6.5 l/100km
LEV
LEV
5M/T
2WD
28 mpg
8.3 l/100km
29 mpg
7.7 l/100km
2003 Natural Resources
Canada EnerGuide most fuel-efficient
vehicle. New model for 2003.
36 mpg
6.0 l/100km
ULEV
ULEV
6M/T
2WD
25 mpg
9.3 l/100km
30 mpg
7.1 l/100km
ULEV
ULEV
4A/T
2WD
26 mpg
9.1 l/100km
30 mpg
7.2 l/100km
TLEV
TLEV
TOYOTA’S FIRST HYDROGEN FUELING STATION
We have completed construction of our first hydrogen fueling
station at our U.S. corporate sales headquarters complex in
hydrogen. The electricity is generated from renewable sources,
making this a carbon-free fuel source. A common infrastructure
support system is important for fuel-cell technology to reach its
fruition. Toyota is committed to working with other members of
the global auto industry to reach this goal.
Toyota 4Runner
(U.S. & Mexico)
(Canada
4WD only)
Lexus
GX 470
(U.S.
only)
4.7 L
Toyota Corolla,
Matrix (U.S.,
Canada &
Mexico)
1.8 L
Working with the California Air Resources Board and the
South Coast Air Quality Management District, as well as
corporations such as Stuart Energy and Air Products, the
model-communities will have a network of six refueling
stations — including the new station at Toyota Motor Sales
national headquarters. With a current maximum range of
approximately 180 miles, the southern fleet of Toyota Fuel
Cell Hybrid Vehicles will have a driving range that covers
most of Los Angeles and Orange Counties.
1.8 L
6M/T
25 mpg
33 mpg
LEV
LEV
New 6M/T transmission
offering for 2003
Toyota Celica
(U.S. & Canada
only)
1.8 L
4 A/T
29 mpg
8.3 l/100km
36 mpg
6.0 l/100km
LEV
LEV
2003 Natural Resources
Canada EnerGuide
most fuel-efficient vehicle.
Vehicle
Category
NMOG
(g/mile)
CO
(g/mile)
ZEV
ALL
0.000
SULEV
Passenger Car
& LDT1
Passenger Car
& LDT1
MDT
0.010
NOx
(g/mile)
HCOH
(g/mile)
0.0
0.0
0.000
1.0
0.02
0.004
0.040
1.7
0.20
0.008
0.117
5.0
0.60
0.011
Passenger Car
& LDT1
0.075
3.4
0.20
0.015
LEV
LDT2
0.100
4.4
0.40
0.018
0.195
5.0
0.60
0.022
TLEV
MDV
Passenger Car
& LDT1
0.125
3.4
0.40
0.015
TIER1
MDV
0.390
5.0
1.10
0.022
ULEV
TOYOTA N ORTH A MERICA
4Runner redesigned for 2003.
New 4.0L and 4.7L engine offerings.
Toyota MR2
(U.S. only)
Certification
Standard
page thirty
Engine
E NVIRONMENTAL R EPORT 2002
Notes:
1. This chart shows 2003 models that are new, redesigned, or have new powertrain options;
and models that were identified in the U.S. EPA/DOT 2003 Model Year Fuel Economy Guide
or the Natural Resources Canada EnerGuide as class fuel economy leaders.
2. Fuel economy estimates are determined by averaging numbers gathered through tests
conducted by the U.S. EPA and Environment Canada. Vehicles are tested in a controlled
setting, and the results are adjusted to suit real-world driving conditions. The fuel economy
ratings for the United States and the fuel consumption ratings for Canada may not be equal
when converted to the same units. The test cycles and correction factors used in generating
these ratings take into account the aerodynamic efficiency, weight, rolling resistance and
drive mode of different vehicles. Other adjustments are made to reflect the average fuel
consumption of vehicle models that offer different configurations/options, based on their
sales mix in each country. These averaging steps may lead to slightly different ratings in
Canada and the United States based on differences in vehicle sales by class and configuration.
In addition, U.S. ratings data will also differ from Canadian ratings data, as the U.S. gallon is
smaller than the imperial gallon used in Canada.
3.
Prius does not have a traditional automatic or manual transmission.
page thirty-one
L IFE C YCLE II
MANUFACTURING
Toyota is determined to achieve top-level environmental
performance in the automotive manufacturing industry in
North America. As part of our effort to do so, Toyota’s
manufacturing facilities plan to significantly reduce energy
usage, emissions of volatile organic compounds and toxics,
and to reduce landfill disposal and water usage, by the
end of FY2006. In addition to the voluntary initiatives
described in this section, we take our regulatory obligations
very seriously. As described in the Environmental
Management section, we work hard to comply with
applicable regulations and to quickly remediate any
instance of non-compliance (see page 20).
UPDATED TARGETS
The “plan-do-check-act” cycle is integral to continous
improvement, or kaizen, that lies at the heart of the Toyota
Production System. In checking the results of our past
activities, it is clear that we are ahead of schedule to meet
our previous five-year action plan goals, detailed in last
year’s report. In fact, we have already achieved, or nearly
achieved, our previous FY2006 goals in two areas: reducing
waste disposal to landfills and reducing emissions of
volatile organic compounds and toxics from body painting
operations. Consequently in this year’s report, we are
announcing new, more challenging goals for volatile
organic compounds, toxics and waste reduction.
NEW PLANT ACTIVITIES: ECO PLANT PLANS
We develop “eco-plant” design plans for each new
construction project that corresponds to our action plan
performance categories and risk management. Each plant
has a focus area in which to achieve top level performance.
For example, the Alabama plant began operating as a zero
waste-to-landfill facility.
During FY2003, we completed construction of Toyota
Motor Manufacturing, Alabama, Inc., in Huntsville,
Alabama, our first facility outside Japan to manufacture
V8 engines. We began building Toyota Motor Manufacturing
de Baja California, a $140 million plant, in Baja, Mexico.
When complete, the plant will create more than 700 jobs
and produce 180,000 truck beds and 30,000 Tacoma
trucks a year. We announced plans to build Toyota Motor
Manufacturing, Texas, Inc., in San Antonio, Texas. This
$800 million facility will create more than 2,000 jobs and
produce 150,000 Tundra trucks annually. We also announced
plans to construct a new casting facility in Jackson, Tennessee,
to eventually produce one million engine blocks per year
and create 200 jobs.
GLOBAL WARMING AND ENERGY USE
Toyota Motor Corporation’s Earth Charter requires all
Toyota divisions to develop technologies that allow the
environment and the economy to coexist. The resulting
action plan requires manufacturing divisions worldwide
to actively reduce emissions of carbon dioxide. As you
read farther in this section, you will see that we have set
energy-reduction targets in order to reduce our consumption
of natural resources and carbon dioxide emissions.
GOAL: ENERGY REDUCTION
TARGET: REDUCE ENERGY USAGE 15
PERCENT PER UNIT OF PRODUCTION
We continue to make good progress towards our target
of reducing total energy usage 15 percent per unit of
production by the end of FY2006, from the base year
2000. This reduction will enable us to achieve a corresponding
reduction in carbon dioxide emissions. To achieve our
target, we are working to reduce energy consumption by
three percent per year until FY2006.
Main: Team member Brent O’Neil checks V-8 engine measurements at Toyota Motor Manufacturing, Alabama, Inc.,
Huntsville, Alabama.
E NVIRONMENTAL R EPORT 2003
page thirty-three
L IFE C YCLE II
MANUFACTURING
Toyota is determined to achieve top-level environmental
performance in the automotive manufacturing industry in
North America. As part of our effort to do so, Toyota’s
manufacturing facilities plan to significantly reduce energy
usage, emissions of volatile organic compounds and toxics,
and to reduce landfill disposal and water usage, by the
end of FY2006. In addition to the voluntary initiatives
described in this section, we take our regulatory obligations
very seriously. As described in the Environmental
Management section, we work hard to comply with
applicable regulations and to quickly remediate any
instance of non-compliance (see page 20).
UPDATED TARGETS
The “plan-do-check-act” cycle is integral to continous
improvement, or kaizen, that lies at the heart of the Toyota
Production System. In checking the results of our past
activities, it is clear that we are ahead of schedule to meet
our previous five-year action plan goals, detailed in last
year’s report. In fact, we have already achieved, or nearly
achieved, our previous FY2006 goals in two areas: reducing
waste disposal to landfills and reducing emissions of
volatile organic compounds and toxics from body painting
operations. Consequently in this year’s report, we are
announcing new, more challenging goals for volatile
organic compounds, toxics and waste reduction.
NEW PLANT ACTIVITIES: ECO PLANT PLANS
We develop “eco-plant” design plans for each new
construction project that corresponds to our action plan
performance categories and risk management. Each plant
has a focus area in which to achieve top level performance.
For example, the Alabama plant began operating as a zero
waste-to-landfill facility.
During FY2003, we completed construction of Toyota
Motor Manufacturing, Alabama, Inc., in Huntsville,
Alabama, our first facility outside Japan to manufacture
V8 engines. We began building Toyota Motor Manufacturing
de Baja California, a $140 million plant, in Baja, Mexico.
When complete, the plant will create more than 700 jobs
and produce 180,000 truck beds and 30,000 Tacoma
trucks a year. We announced plans to build Toyota Motor
Manufacturing, Texas, Inc., in San Antonio, Texas. This
$800 million facility will create more than 2,000 jobs and
produce 150,000 Tundra trucks annually. We also announced
plans to construct a new casting facility in Jackson, Tennessee,
to eventually produce one million engine blocks per year
and create 200 jobs.
GLOBAL WARMING AND ENERGY USE
Toyota Motor Corporation’s Earth Charter requires all
Toyota divisions to develop technologies that allow the
environment and the economy to coexist. The resulting
action plan requires manufacturing divisions worldwide
to actively reduce emissions of carbon dioxide. As you
read farther in this section, you will see that we have set
energy-reduction targets in order to reduce our consumption
of natural resources and carbon dioxide emissions.
GOAL: ENERGY REDUCTION
TARGET: REDUCE ENERGY USAGE 15
PERCENT PER UNIT OF PRODUCTION
We continue to make good progress towards our target
of reducing total energy usage 15 percent per unit of
production by the end of FY2006, from the base year
2000. This reduction will enable us to achieve a corresponding
reduction in carbon dioxide emissions. To achieve our
target, we are working to reduce energy consumption by
three percent per year until FY2006.
Main: Team member Brent O’Neil checks V-8 engine measurements at Toyota Motor Manufacturing, Alabama, Inc.,
Huntsville, Alabama.
E NVIRONMENTAL R EPORT 2003
page thirty-three
L IFE C YCLE II
“To eliminate waste is the objective of the Toyota
Production System as well as the essence of good
environmental performance.”
— Dennis Cuneo, Senior Vice President,
Toyota Motor Manufacturing, North America, Inc.
GOAL: DEVELOP EXTENSIVE REDUCTION
STRATEGIES TO REDUCE EMISSIONS
OF CONCERN
Our environmental action plan sets targets for reduction
of emissions of substances of concern. We developed and
put into place a Toxic Chemical Release Reduction
Strategy that has enabled us to make steady progress
toward those targets. The strategy includes:
Team Member Ron Fratoni sprays inside of car doors in a paint booth at New United Motor Manufacturing, Inc., Fremont, California.
Average mmBtu/Vehicle
Figure S
10
9.4
mmBtu/Vehicle
9
In FY2003, we reduced energy usage by five percent,
which exceeded our target of three percent. This was a
significant accomplishment considering the continued
increases in production volume and plant size. Figure S
illustrates our decreasing energy usage from 1999 to
FY2003, expressed in million British Thermal Units per
vehicle (mmBtu/vehicle).
In all, we have reduced energy consumption by approximately
12 percent per vehicle from 2000, our first year of reporting.
We are well on the way to achieving our FY2006 target, as
shown in Figure S.
Some of our North American energy-reduction
kaizens include:
• Developing waste-heat recovery systems in
our paint shops;
• Establishing energy-usage guidelines for nonproduction periods (weekends, between shifts, etc.);
9.1
8.3
2000
FY 01*
FY 03*
FY 02*
*Fiscal year (FY): Runs April - March
NA FY2006 Action Plan Target = 7.8 mmBtu/Vehicle
• Removing/streamlining painting operations;
• Introducing new, high-efficiency
process technologies;
• Removing manual spray-painting guns from
paint booths to prevent unnecessary use of
cleaning chemicals;
• Reducing use of cleaning solvents;
• Improving data management to quickly check
our progress and project the impacts of each
improvement strategy.
• Increasing tracking of performance data for early
evaluation of trends/opportunities for improvement;
• Introducing waterborne painting technology.
TARGET: REDUCE BODY-PAINTING EMISSIONS
• Installing low-wattage lighting fixtures and
energy-efficient bulbs;
• Replacing compressed-air dryers with new, more
efficient units;
• Upgrading compressor controls and modifying
boiler controls with more efficient systems.
SUBSTANCES OF CONCERN
The majority of air pollutants released by our
manufacturing facilities are volatile organic compounds,
or VOCs, from our auto body painting operations. The
U.S. Environmental Protection Agency’s Toxic Release
Inventory, TRI, and Environment Canada’s National
Pollutant Release Inventory, NPRI, defines some of these
VOCs as toxic air pollutants. In this section we discuss
progress towards reduction of emissions of these
substances of concern.
• Creating model energy plants in order to
develop best practices that can be applied
in other facilities;
page thirty-four
• Installing electrostatic guns to improve
painting efficiencies;
• Employing improved production line
operating techniques;
7
6
• Introducing new robotics to optimize
spray efficiencies;
• Researching and developing paints and solvents
that help reduce harm to the environment;
8.6
8
• Investigating low VOC/hazardous air
pollutant cleaning solvents;
TOYOTA N ORTH A MERICA
OF VOLATILE ORGANIC COMPOUNDS
Volatile organic compounds are a category of chemicals
that can react photochemically in the atmosphere to form
ground level ozone — a primary component of smog. In
last year’s report, we restated that our environmental action
plan called for a reduction in emissions to less than 30 g/m2
for all body paint shops by FY2006. In FY2003 we achieved
a two percent reduction in body-painting emissions from
FY2002. While this reduction may appear small, we have
reduced VOC emissions by approximately 32 percent from
the base year of 1998, meeting our target in the first year
of our action plan and continuing significant reductions
in every year since the original target was set.
Because of our overall progress, we strengthened our
FY2006 action plan target by revising it to 22 g/m2 as an
overall average across auto body paint shops in North
America, a 26 percent target reduction and 38 percent
overall reduction from baseline.
E NVIRONMENTAL R EPORT 2003
Average VOC g/m2
40
35
Figure T
35.4
38% Reduction
Target
30
25
g/m2
At TMMC and plants
throughout North
America, Toyota is
upgrading compressor
and boiler controls
in order to reduce
energy usage.
15% Reduction
Target
To reach our target, we are continuing the kaizens that
have enabled us to reduce VOCs, including:
25.3
24.8
20
24.2
15
10
5
1998
0
FY 01*
FY 02*
FY 03*
*Fiscal year (FY): Runs April - March
Original FY2006 Target = 30 g/m2
FY2006 Action Plan Target = 22 g/m2
page thirty-five
L IFE C YCLE II
“To eliminate waste is the objective of the Toyota
Production System as well as the essence of good
environmental performance.”
— Dennis Cuneo, Senior Vice President,
Toyota Motor Manufacturing, North America, Inc.
GOAL: DEVELOP EXTENSIVE REDUCTION
STRATEGIES TO REDUCE EMISSIONS
OF CONCERN
Our environmental action plan sets targets for reduction
of emissions of substances of concern. We developed and
put into place a Toxic Chemical Release Reduction
Strategy that has enabled us to make steady progress
toward those targets. The strategy includes:
Team Member Ron Fratoni sprays inside of car doors in a paint booth at New United Motor Manufacturing, Inc., Fremont, California.
Average mmBtu/Vehicle
Figure S
10
9.4
mmBtu/Vehicle
9
In FY2003, we reduced energy usage by five percent,
which exceeded our target of three percent. This was a
significant accomplishment considering the continued
increases in production volume and plant size. Figure S
illustrates our decreasing energy usage from 1999 to
FY2003, expressed in million British Thermal Units per
vehicle (mmBtu/vehicle).
In all, we have reduced energy consumption by approximately
12 percent per vehicle from 2000, our first year of reporting.
We are well on the way to achieving our FY2006 target, as
shown in Figure S.
Some of our North American energy-reduction
kaizens include:
• Developing waste-heat recovery systems in
our paint shops;
• Establishing energy-usage guidelines for nonproduction periods (weekends, between shifts, etc.);
9.1
8.3
2000
FY 01*
FY 03*
FY 02*
*Fiscal year (FY): Runs April - March
NA FY2006 Action Plan Target = 7.8 mmBtu/Vehicle
• Removing/streamlining painting operations;
• Introducing new, high-efficiency
process technologies;
• Removing manual spray-painting guns from
paint booths to prevent unnecessary use of
cleaning chemicals;
• Reducing use of cleaning solvents;
• Improving data management to quickly check
our progress and project the impacts of each
improvement strategy.
• Increasing tracking of performance data for early
evaluation of trends/opportunities for improvement;
• Introducing waterborne painting technology.
TARGET: REDUCE BODY-PAINTING EMISSIONS
• Installing low-wattage lighting fixtures and
energy-efficient bulbs;
• Replacing compressed-air dryers with new, more
efficient units;
• Upgrading compressor controls and modifying
boiler controls with more efficient systems.
SUBSTANCES OF CONCERN
The majority of air pollutants released by our
manufacturing facilities are volatile organic compounds,
or VOCs, from our auto body painting operations. The
U.S. Environmental Protection Agency’s Toxic Release
Inventory, TRI, and Environment Canada’s National
Pollutant Release Inventory, NPRI, defines some of these
VOCs as toxic air pollutants. In this section we discuss
progress towards reduction of emissions of these
substances of concern.
• Creating model energy plants in order to
develop best practices that can be applied
in other facilities;
page thirty-four
• Installing electrostatic guns to improve
painting efficiencies;
• Employing improved production line
operating techniques;
7
6
• Introducing new robotics to optimize
spray efficiencies;
• Researching and developing paints and solvents
that help reduce harm to the environment;
8.6
8
• Investigating low VOC/hazardous air
pollutant cleaning solvents;
TOYOTA N ORTH A MERICA
OF VOLATILE ORGANIC COMPOUNDS
Volatile organic compounds are a category of chemicals
that can react photochemically in the atmosphere to form
ground level ozone — a primary component of smog. In
last year’s report, we restated that our environmental action
plan called for a reduction in emissions to less than 30 g/m2
for all body paint shops by FY2006. In FY2003 we achieved
a two percent reduction in body-painting emissions from
FY2002. While this reduction may appear small, we have
reduced VOC emissions by approximately 32 percent from
the base year of 1998, meeting our target in the first year
of our action plan and continuing significant reductions
in every year since the original target was set.
Because of our overall progress, we strengthened our
FY2006 action plan target by revising it to 22 g/m2 as an
overall average across auto body paint shops in North
America, a 26 percent target reduction and 38 percent
overall reduction from baseline.
E NVIRONMENTAL R EPORT 2003
Average VOC g/m2
40
35
Figure T
35.4
38% Reduction
Target
30
25
g/m2
At TMMC and plants
throughout North
America, Toyota is
upgrading compressor
and boiler controls
in order to reduce
energy usage.
15% Reduction
Target
To reach our target, we are continuing the kaizens that
have enabled us to reduce VOCs, including:
25.3
24.8
20
24.2
15
10
5
1998
0
FY 01*
FY 02*
FY 03*
*Fiscal year (FY): Runs April - March
Original FY2006 Target = 30 g/m2
FY2006 Action Plan Target = 22 g/m2
page thirty-five
L IFE C YCLE II
“We’re one of two Toyota factories in the
United States to achieve zero landfill status.
It’s something our plant is proud of.”
— Don Stewart, Manager
Toyota Motor Manufacturing, West Virginia, Inc.
NAMC TRI/NPRI Air Release per Vehicle
2
Figure U
1.8
1.7
1.6
59% Reduction
Target
kg/vehicle
1.4
1.2
1.0
1.0
0.9
0.8
0.85
0.6
0.4
1997
0.2
0.0
2000
2001
2002
Calendar Year
Original FY 2006 Target = 1.0 kg/vehicle
FY2006 Action Plan Target = 0.7 kg/vehicle
TARGET: REDUCE TOXIC CHEMICALS EMIT TED
TARGET: CONTINUE R&D ACTIVITIES AIMED
GOAL: REDUCE WASTE AND PROMOTE
AT ELIMINATING ALL VOCS AND TOXIC
CHEMICALS FROM COOLANTS AND CUT TING
OILS USED IN UNIT PLANTS
Although insignificant in volume compared to our
assembly plants, we continued to develop and introduce
coolants, washing chemicals and cutting oils with lower
VOC and toxics for our unit plants. The Alabama engine
plant started production with low-VOC materials
previously introduced at our West Virginia facility.
RESOURCE CONSERVATION ACTIVITIES
WASTE DISPOSAL
Continuous improvement, or “kaizen,” and the elimination
of waste, or “muda” are core principles of the Toyota Way.
In the following section we discuss our kaizens to reduce
waste and conserve material resources, whenever possible.
BY VEHICLE ASSEMBLY PLANTS
Our initial action plan called for us to reduce toxic chemicals
emitted by each vehicle assembly plant to 1.0 kg/vehicle
or less by 2006. As you will see in Figure U, we achieved
our target in 2000. We have continued to maintain our
acheivement of this target through 2001 and 2002.
Due to our overall success, we have now revised our
target for FY2006 to 0.7 kg/vehicle.
40
Figure V
35
30
kg/vehicle
The same projects used to reduce emissions of volatile
organic compounds have helped us reduce toxic emissions
overall by 53 percent from the base year of 1997.
Landfill Waste kg/vehicle
34
70% Reduction
Target
25
24
20
18
15
10
5
0
1999
FY 01*
FY 02*
FY 03*
*Fiscal year (FY): Runs April - March
FY2006 Action Plan Target = 10 kg/vehicle
page thirty-six
TOYOTA’S “5RS” PROGRAM
FOR WASTE REDUCTION
• Segregating recyclable materials such as paper,
metals, plastic, wood and cardboard;
To reduce waste, especially hazardous waste, our
manufacturing facilities continue kaizen efforts based
on our Toyota “5Rs” Program for Waste Reduction:
• Converting from disposable to returnable packaging;
• Refine: Substitute materials and change designs
to expand “Reduce, Reuse and Recycle” capabilities;
• Re-programming painting robots to improve
the spray pattern and decrease over spraying,
thereby reducing the amount of paint used
and the amount of drippage to be discarded;
• Reduce: Develop and design production
technologies that generate less waste;
• Installing briquetters to recycle metal sludges
that would otherwise be landfilled;
• Reuse: Reuse waste materials in the same
production process;
• Recycling paint sludge to make guard-rail
insulators and parking blocks;
• Recycle: Utilize waste materials in
a different capacity;
• Sending wastewater sludge to cement kilns as
a raw material feedstock;
• Retrieve Energy: Utilize waste energy resources.
• Recycling over 100 types of plugs, caps and other
packaging items;
TARGETS: REDUCE HAZARDOUS WASTE
32
TOYOTA N ORTH A MERICA
We achieved these successes in our North American plants
by means of conservation and recycling kaizens, including:
DISPOSAL AT LANDFILLS BY 95 PERCENT;
REDUCE LANDFILL OF ALL WASTE BY
70 PERCENT TO 10 KG /VEHICLE
A hazardous waste is one that is ignitable (i.e., burns
readily), corrosive or reactive (e.g., explosive) or contains
certain amounts of toxic chemicals.
Our initial FY2006 environmental action plan target
called for a 95 percent reduction in hazardous waste
disposal at landfills by FY2006, from a 1999 base year.
The plan also committed us to continuing research and
development activities aimed at reducing the landfill
of other wastes. Since 1999, Toyota has reduced landfill
disposal of hazardous waste by 67 percent to 0.20
kg/vehicle and disposal of all waste at landfills by
approximately 47 percent to 18 kg/vehicle as seen
in Figure V.
E NVIRONMENTAL R EPORT 2003
• Segregating cafeteria wastes, eliminating styrofoam,
recycling plastic and aluminum, and composting
food wastes.
Because of our overall progress in reducing all types of
landfill waste, we have now set a more challenging target
for FY2006 — reduce landfill of all waste by 70 percent
to 10 kg/vehicle from a 1999 baseline. This includes
continuing to work towards a 95 percent reduction in
hazardous waste disposed to landfill.
Team Member Ricky
Dale places a cart full
of metal sludge into
the briquetter
machine at Toyota
Motor Manufacturing,
Alabama, Inc.,
Hunstville, Alabama.
The briquetter makes
it easier to recycle
sludge and prevents
it from ending up in
a landfill.
page thirty-seven
L IFE C YCLE II
“We’re one of two Toyota factories in the
United States to achieve zero landfill status.
It’s something our plant is proud of.”
— Don Stewart, Manager
Toyota Motor Manufacturing, West Virginia, Inc.
NAMC TRI/NPRI Air Release per Vehicle
2
Figure U
1.8
1.7
1.6
59% Reduction
Target
kg/vehicle
1.4
1.2
1.0
1.0
0.9
0.8
0.85
0.6
0.4
1997
0.2
0.0
2000
2001
2002
Calendar Year
Original FY 2006 Target = 1.0 kg/vehicle
FY2006 Action Plan Target = 0.7 kg/vehicle
TARGET: REDUCE TOXIC CHEMICALS EMIT TED
TARGET: CONTINUE R&D ACTIVITIES AIMED
GOAL: REDUCE WASTE AND PROMOTE
AT ELIMINATING ALL VOCS AND TOXIC
CHEMICALS FROM COOLANTS AND CUT TING
OILS USED IN UNIT PLANTS
Although insignificant in volume compared to our
assembly plants, we continued to develop and introduce
coolants, washing chemicals and cutting oils with lower
VOC and toxics for our unit plants. The Alabama engine
plant started production with low-VOC materials
previously introduced at our West Virginia facility.
RESOURCE CONSERVATION ACTIVITIES
WASTE DISPOSAL
Continuous improvement, or “kaizen,” and the elimination
of waste, or “muda” are core principles of the Toyota Way.
In the following section we discuss our kaizens to reduce
waste and conserve material resources, whenever possible.
BY VEHICLE ASSEMBLY PLANTS
Our initial action plan called for us to reduce toxic chemicals
emitted by each vehicle assembly plant to 1.0 kg/vehicle
or less by 2006. As you will see in Figure U, we achieved
our target in 2000. We have continued to maintain our
acheivement of this target through 2001 and 2002.
Due to our overall success, we have now revised our
target for FY2006 to 0.7 kg/vehicle.
40
Figure V
35
30
kg/vehicle
The same projects used to reduce emissions of volatile
organic compounds have helped us reduce toxic emissions
overall by 53 percent from the base year of 1997.
Landfill Waste kg/vehicle
34
70% Reduction
Target
25
24
20
18
15
10
5
0
1999
FY 01*
FY 02*
FY 03*
*Fiscal year (FY): Runs April - March
FY2006 Action Plan Target = 10 kg/vehicle
page thirty-six
TOYOTA’S “5RS” PROGRAM
FOR WASTE REDUCTION
• Segregating recyclable materials such as paper,
metals, plastic, wood and cardboard;
To reduce waste, especially hazardous waste, our
manufacturing facilities continue kaizen efforts based
on our Toyota “5Rs” Program for Waste Reduction:
• Converting from disposable to returnable packaging;
• Refine: Substitute materials and change designs
to expand “Reduce, Reuse and Recycle” capabilities;
• Re-programming painting robots to improve
the spray pattern and decrease over spraying,
thereby reducing the amount of paint used
and the amount of drippage to be discarded;
• Reduce: Develop and design production
technologies that generate less waste;
• Installing briquetters to recycle metal sludges
that would otherwise be landfilled;
• Reuse: Reuse waste materials in the same
production process;
• Recycling paint sludge to make guard-rail
insulators and parking blocks;
• Recycle: Utilize waste materials in
a different capacity;
• Sending wastewater sludge to cement kilns as
a raw material feedstock;
• Retrieve Energy: Utilize waste energy resources.
• Recycling over 100 types of plugs, caps and other
packaging items;
TARGETS: REDUCE HAZARDOUS WASTE
32
TOYOTA N ORTH A MERICA
We achieved these successes in our North American plants
by means of conservation and recycling kaizens, including:
DISPOSAL AT LANDFILLS BY 95 PERCENT;
REDUCE LANDFILL OF ALL WASTE BY
70 PERCENT TO 10 KG /VEHICLE
A hazardous waste is one that is ignitable (i.e., burns
readily), corrosive or reactive (e.g., explosive) or contains
certain amounts of toxic chemicals.
Our initial FY2006 environmental action plan target
called for a 95 percent reduction in hazardous waste
disposal at landfills by FY2006, from a 1999 base year.
The plan also committed us to continuing research and
development activities aimed at reducing the landfill
of other wastes. Since 1999, Toyota has reduced landfill
disposal of hazardous waste by 67 percent to 0.20
kg/vehicle and disposal of all waste at landfills by
approximately 47 percent to 18 kg/vehicle as seen
in Figure V.
E NVIRONMENTAL R EPORT 2003
• Segregating cafeteria wastes, eliminating styrofoam,
recycling plastic and aluminum, and composting
food wastes.
Because of our overall progress in reducing all types of
landfill waste, we have now set a more challenging target
for FY2006 — reduce landfill of all waste by 70 percent
to 10 kg/vehicle from a 1999 baseline. This includes
continuing to work towards a 95 percent reduction in
hazardous waste disposed to landfill.
Team Member Ricky
Dale places a cart full
of metal sludge into
the briquetter
machine at Toyota
Motor Manufacturing,
Alabama, Inc.,
Hunstville, Alabama.
The briquetter makes
it easier to recycle
sludge and prevents
it from ending up in
a landfill.
page thirty-seven
L IFE C YCLE II
2003 NORTH AMERICAN PRODUCTION
ENVIRONMENTAL CONFERENCE
Manufacturing held its annual three-day environmental conference,
a 13-year tradition, this past November at Toyota Motor Manufacturing, Kentucky, Inc.’s Georgetown, Kentucky, plant. Day One
included the first jointly coordinated meeting with Toyota Motor
Corporation’s Environmental Affairs Division to increase global
standardization and the priority of environmental management.
Yasuhito Yamauchi, TMC senior managing director in charge
of global production and environmental management, chaired
the proceedings.
GREEN SUPPLIER GOAL:
TMMC has installed an industrial water recycling system. Here an operator monitors the performance of the system.
WATER USE
TARGET: REDUCE TOTAL WATER USAGE
One of our most challenging goals is reducing the
amount of water needed to produce a vehicle. We use
water in many different manufacturing processes.
Painting operations account for the greatest use, but
quenching, cooling and cleaning activities are examples of
other uses. In this section we describe our efforts to
conserve this natural resource.
BY 15 PERCENT PER UNIT OF PRODUCTION
Our North American environmental action plan calls for
a 15 percent reduction per unit of production by the end
of FY2006, from our base year of 2000.
GOAL: IMPLEMENT AGGRESSIVE PLANS TO
REDUCE CONSUMPTION OF WATER
Despite our need for water in so many manufacturing
processes, related technical staff throughout North
America continue to investigate ways to limit our
consumption of water. We’re currently benchmarking our
activities against our competitors’ and our own best
plants, and evaluating improvements that have been
successful in similar processes. We’re also developing
water usage and other eco-plant targets for new plant
construction projects.
We reduced overall water use per vehicle produced
by approximately 12 percent since 1999. In FY2003
we reduced water usage by approximately 11 percent
over FY2002.
Our overall success is the aggregate of successful kaizen
activities across North America. For example:
• Installing industrial water recycling systems;
• Installing new plant water recycling systems
to significantly reduce the amount of water
purchased from utility companies;
• Recycling condensate to be re-used in
steam systems;
• Installing waterless urinals to reduce domestic
water usage.
Water Usage Average kg/vehicle
Figure W
1.25
kGal/vehicle
1.125
1.14
15% Reduction
Target
1.13
1.12
1.0
1.0
1999
FY 01
FY 02
Our Web site www.toyota.com/about/environment/
manufacturing/supplier.html contains our Green
Supplier Guidelines.
TO 1S0 14001 BY DECEMBER 2003
We require key suppliers of raw materials and/or parts
and components to develop and implement an ISO 14001
certified/registered environmental management system
by end of 2003. We have assisted suppliers with the
certification/registration process by providing an ISO
14001 Guidance Manual. In addition, ISO 14001 requires
facilities to conduct periodic internal compliance reviews
of their environmental management systems.
TARGET: COMPLY WITH CHEMICAL BAN
LIST/ENVIRONMENTAL DATA SHEET
We created a streamlined, efficient Web-based system to
approve raw materials destined for our manufacturing
facilities. We send environmental data sheet requests
electronically to suppliers. They enter the ingredients of
raw materials they intend to supply. Before approving the
new materials, we compare the ingredients against a series
of databases containing our chemical ban list as well as
other regulatory lists.
FY 03
*Fiscal year (FY): April - March
FY2006 Action Plan Target = 0.96 kGal/vehicle
page thirty-eight
TOYOTA N ORTH A MERICA
The remaining two days of the event included technical discussions,
planning and information sharing between core environmental
staff in North America to facilitate further progress towards
established goals.
TARGET: CERTIFY/REGISTER KEY SUPPLIERS
North American suppliers must eliminate the use of chemicals
and certain chemical categories on Toyota’s global
chemical ban list in new and/or reformulated materials.
.875
.625
ESTABLISH GREEN SUPPLIER GUIDELINES
We work with our suppliers to promote business activities
that better protect the environment. In June 2000, we
issued Green Supplier Guidelines that promote “greener”
purchasing activities.
Day One was attended by top management at each manufacturing
facility charged with environmental responsibility. The agenda
included overall and individual plant environmental performance
status reports, future direction and new programs, a plant kaizen
tour to view implemented improvements and an awards ceremony
highlighting individual plant progress towards FY2006 action
plan targets.
E NVIRONMENTAL R EPORT 2003TOYOTA N ORTH A MERICA E NVIRONMENTAL R EPORT 2002
Toyota Motor Corporation’s Senior Managing
Director Yasuhito Yamauchi, addresses
Manufacturing’s annual North American
Production Environmental Conference held at
Toyota Motor Manufacturing, Kentucky, Inc.
At this conference, plants were recognized for outstanding environmental
achievements, and a special award went to the manufacturing plant in
Princeton, Indiana.
TARGET: DEVELOP PROCEDURES THAT
ENSURE COMPLIANCE WITH HAZARDOUS
MATERIALS/DANGEROUS GOODS
TRANSPORTATION GUIDELINES
To ensure that all shipments to and from our North
American facilities comply with applicable regulations,
we provide training to all Toyota employees involved with
the handling and/or transportation of hazardous materials/
dangerous goods. We also require our suppliers and
contractors to put in place a transportation system that
complies with hazardous materials/dangerous goods
transportation guidelines, including a means to monitor
changes in such regulations.
page thirty-nine
L IFE C YCLE II
2003 NORTH AMERICAN PRODUCTION
ENVIRONMENTAL CONFERENCE
Manufacturing held its annual three-day environmental conference,
a 13-year tradition, this past November at Toyota Motor Manufacturing, Kentucky, Inc.’s Georgetown, Kentucky, plant. Day One
included the first jointly coordinated meeting with Toyota Motor
Corporation’s Environmental Affairs Division to increase global
standardization and the priority of environmental management.
Yasuhito Yamauchi, TMC senior managing director in charge
of global production and environmental management, chaired
the proceedings.
GREEN SUPPLIER GOAL:
TMMC has installed an industrial water recycling system. Here an operator monitors the performance of the system.
WATER USE
TARGET: REDUCE TOTAL WATER USAGE
One of our most challenging goals is reducing the
amount of water needed to produce a vehicle. We use
water in many different manufacturing processes.
Painting operations account for the greatest use, but
quenching, cooling and cleaning activities are examples of
other uses. In this section we describe our efforts to
conserve this natural resource.
BY 15 PERCENT PER UNIT OF PRODUCTION
Our North American environmental action plan calls for
a 15 percent reduction per unit of production by the end
of FY2006, from our base year of 2000.
GOAL: IMPLEMENT AGGRESSIVE PLANS TO
REDUCE CONSUMPTION OF WATER
Despite our need for water in so many manufacturing
processes, related technical staff throughout North
America continue to investigate ways to limit our
consumption of water. We’re currently benchmarking our
activities against our competitors’ and our own best
plants, and evaluating improvements that have been
successful in similar processes. We’re also developing
water usage and other eco-plant targets for new plant
construction projects.
We reduced overall water use per vehicle produced
by approximately 12 percent since 1999. In FY2003
we reduced water usage by approximately 11 percent
over FY2002.
Our overall success is the aggregate of successful kaizen
activities across North America. For example:
• Installing industrial water recycling systems;
• Installing new plant water recycling systems
to significantly reduce the amount of water
purchased from utility companies;
• Recycling condensate to be re-used in
steam systems;
• Installing waterless urinals to reduce domestic
water usage.
Water Usage Average kg/vehicle
Figure W
1.25
kGal/vehicle
1.125
1.14
15% Reduction
Target
1.13
1.12
1.0
1.0
1999
FY 01
FY 02
Our Web site www.toyota.com/about/environment/
manufacturing/supplier.html contains our Green
Supplier Guidelines.
TO 1S0 14001 BY DECEMBER 2003
We require key suppliers of raw materials and/or parts
and components to develop and implement an ISO 14001
certified/registered environmental management system
by end of 2003. We have assisted suppliers with the
certification/registration process by providing an ISO
14001 Guidance Manual. In addition, ISO 14001 requires
facilities to conduct periodic internal compliance reviews
of their environmental management systems.
TARGET: COMPLY WITH CHEMICAL BAN
LIST/ENVIRONMENTAL DATA SHEET
We created a streamlined, efficient Web-based system to
approve raw materials destined for our manufacturing
facilities. We send environmental data sheet requests
electronically to suppliers. They enter the ingredients of
raw materials they intend to supply. Before approving the
new materials, we compare the ingredients against a series
of databases containing our chemical ban list as well as
other regulatory lists.
FY 03
*Fiscal year (FY): April - March
FY2006 Action Plan Target = 0.96 kGal/vehicle
page thirty-eight
TOYOTA N ORTH A MERICA
The remaining two days of the event included technical discussions,
planning and information sharing between core environmental
staff in North America to facilitate further progress towards
established goals.
TARGET: CERTIFY/REGISTER KEY SUPPLIERS
North American suppliers must eliminate the use of chemicals
and certain chemical categories on Toyota’s global
chemical ban list in new and/or reformulated materials.
.875
.625
ESTABLISH GREEN SUPPLIER GUIDELINES
We work with our suppliers to promote business activities
that better protect the environment. In June 2000, we
issued Green Supplier Guidelines that promote “greener”
purchasing activities.
Day One was attended by top management at each manufacturing
facility charged with environmental responsibility. The agenda
included overall and individual plant environmental performance
status reports, future direction and new programs, a plant kaizen
tour to view implemented improvements and an awards ceremony
highlighting individual plant progress towards FY2006 action
plan targets.
E NVIRONMENTAL R EPORT 2003TOYOTA N ORTH A MERICA E NVIRONMENTAL R EPORT 2002
Toyota Motor Corporation’s Senior Managing
Director Yasuhito Yamauchi, addresses
Manufacturing’s annual North American
Production Environmental Conference held at
Toyota Motor Manufacturing, Kentucky, Inc.
At this conference, plants were recognized for outstanding environmental
achievements, and a special award went to the manufacturing plant in
Princeton, Indiana.
TARGET: DEVELOP PROCEDURES THAT
ENSURE COMPLIANCE WITH HAZARDOUS
MATERIALS/DANGEROUS GOODS
TRANSPORTATION GUIDELINES
To ensure that all shipments to and from our North
American facilities comply with applicable regulations,
we provide training to all Toyota employees involved with
the handling and/or transportation of hazardous materials/
dangerous goods. We also require our suppliers and
contractors to put in place a transportation system that
complies with hazardous materials/dangerous goods
transportation guidelines, including a means to monitor
changes in such regulations.
page thirty-nine
L IFE C YCLE II
“Besides the obvious benefits of increasing
environmental awareness … there are real
cost savings that can and are being achieved
as a result of this program.”
— Don Jackson, Vice President of Manufacturing,
Toyota Motor Manufacturing, Kentucky, Inc.
Team Member Jennifer Tieu checks robots applying Polyvinyl Chloride to cars at Toyota Motor Manufacturing, Canada, Inc.,
Cambridge, Ontario. Toyota reprogrammed the robots to eliminate excess material dripping onto the floor.
PLANT ACTIVITIES
Across North America Toyota facilities are continuously
seeking ways to improve environmental performance
and reduce the potential environmental impacts of their
operations. Here is a sampling of some of our current
and on-going activities:
Bodine Aluminum, Inc. — In St. Louis and Troy, Missouri,
Bodine reduced landfill of hazardous waste by 98 percent.
The plant recycles aluminum dust from melting operations
and sends its waste foundry sand to a cement kiln for use
in making concrete. Bodine recycles almost five tons per
month of paper and cardboard, and began a recycling
program for plastic soda bottles.
Canadian Autoparts Toyota, Inc. (CAPTIN) — In Delta,
British Columbia, CAPTIN participates in the Power
Smart Program. Under terms of the program, CAPTIN
is reducing its use of energy and procuring some of its
electricity from green sources. CAPTIN also phased out
the use of dichloromethane, (used to clean painting
fixtures) because it is on the Toyota banned chemical list.
New United Motor Manufacturing, Inc. (NUMMI) —
In Fremont, California, NUMMI won a waste reduction
award for reducing non-hazardous waste for the fourth
straight year. In addition, NUMMI completed a plantwide re-lamping project that saves 12.5 million kW of
electricity per year.
TABC, Inc. — In Long Beach, California, TABC decreased
water consumption by reusing reject water from a reverse
osmosis unit in other, non-critical processes. TABC was
one of Toyota’s first plants to reach its hazardous waste
reduction target, and is currently using Toyota “5Rs”
Program for Waste Reduction to reduce landfill disposal
of non-hazardous wastes.
Toyota Motor Manufacturing, Alabama, Inc.
(TMMAL) — In Huntsville, Alabama, TMMAL, our
newest manufacturing facility, started up as a zero wasteto-landfill facility. To make this possible, TMMAL made
it easier for team members to collect paper, plastic,
cardboard and other recyclable materials. The plant
installed a briquetter that makes it easier to recycle metal
sludge that might otherwise have ended up in a landfill.
TMMAL participates in the City of Huntsville’s waste-toenergy program: Waste
that can’t be recycled
is trucked to a city
facility that burns it to
create energy. TMMAL
designed the plant’s
lighting, heating,
ventilation and air
conditioning units and
chilled water systems
to conserve energy.
Toyota Motor Manufacturing, Canada, Inc. (TMMC) —
In Cambridge, Ontario, TMMC installed a new waterborne
cartridge paint system in its Lexus RX 330 body paint
shop to reduce emissions of volatile organic compounds.
TMMC recycles paint sludge for use in making plastic
highway guard-rail insulators and parking lot blocks, and
reprogrammed robots applying Polyvinyl Chloride, PVC,
to the underside of our vehicles, eliminating excess PVC
that dripped onto the floor and, previously, went to landfill.
TMMC also installed new air compressor controls, reducing
energy use by approximately 15 percent. The plant also
installed waterless urinals, reducing water usage by 51,000
gallons per month.
Toyota Motor Manufacturing, Kentucky, Inc. (TMMK) —
In Georgetown, Kentucky, TMMK refurbished the paint
shop in Plant One which is projected to reduce VOC
emissions by nearly 30 percent. The plant created Earth
Care Centers to improve segregation of recyclable
materials, and diverted more than 120 tons of plastic,
cardboard, paper, glass and other items from landfill. In
addition, TMMK is implementing pilot projects to reduce
waste and recycle/reuse wastewater and reduce the use of
water. Finally, Toyota is developing TMMK as a model
plant for energy reduction in paint shops.
Toyota Motor Manufacturing, Indiana, Inc. (TMMI) —
In Princeton, Indiana, TMMI focused on reducing energy
use during non-productive times and equipped its new
East Plant with a waterborne cartridge painting system
that reduces emissions of volatile organic compounds.
Toyota is installing metal briquetters like the one shown at TMMAL in
order to allow recycling of metal sludges that were previously landfilled
due to the inability of recyclers to handle the previously wet-oily waste.
page forty
TOYOTA N ORTH A MERICA
E NVIRONMENTAL R EPORT 2003
Group Leader, Mike Dennis puts parts for recycling into the Earth Care
Center, created by Toyota Motor Manufacturing, Kentucky, Inc., to improve
segregation of recyclable materials.
Toyota Motor Manufacturing, West Virginia, Inc.,
(TMMWV) — In Buffalo, West Virginia, TMMWV
completed initial implementation of a zero waste-tolandfill program at the plant; currently no wastes are
being disposed in landfills. To achieve the goal, the plant
improved its material segregation techniques, installed a
bailer to make recycling of plastics more practical and
installed a briquetter to recycle metal sludge. TMMWV
ships wastewater sludge to a cement kiln for use in making
concrete. Toyota is developing TMMWV as a model plant
for energy reduction, with emphasis on reducing energy
used between shifts and enhancing the compressed air
control system.
page forty-one
L IFE C YCLE II
“Besides the obvious benefits of increasing
environmental awareness … there are real
cost savings that can and are being achieved
as a result of this program.”
— Don Jackson, Vice President of Manufacturing,
Toyota Motor Manufacturing, Kentucky, Inc.
Team Member Jennifer Tieu checks robots applying Polyvinyl Chloride to cars at Toyota Motor Manufacturing, Canada, Inc.,
Cambridge, Ontario. Toyota reprogrammed the robots to eliminate excess material dripping onto the floor.
PLANT ACTIVITIES
Across North America Toyota facilities are continuously
seeking ways to improve environmental performance
and reduce the potential environmental impacts of their
operations. Here is a sampling of some of our current
and on-going activities:
Bodine Aluminum, Inc. — In St. Louis and Troy, Missouri,
Bodine reduced landfill of hazardous waste by 98 percent.
The plant recycles aluminum dust from melting operations
and sends its waste foundry sand to a cement kiln for use
in making concrete. Bodine recycles almost five tons per
month of paper and cardboard, and began a recycling
program for plastic soda bottles.
Canadian Autoparts Toyota, Inc. (CAPTIN) — In Delta,
British Columbia, CAPTIN participates in the Power
Smart Program. Under terms of the program, CAPTIN
is reducing its use of energy and procuring some of its
electricity from green sources. CAPTIN also phased out
the use of dichloromethane, (used to clean painting
fixtures) because it is on the Toyota banned chemical list.
New United Motor Manufacturing, Inc. (NUMMI) —
In Fremont, California, NUMMI won a waste reduction
award for reducing non-hazardous waste for the fourth
straight year. In addition, NUMMI completed a plantwide re-lamping project that saves 12.5 million kW of
electricity per year.
TABC, Inc. — In Long Beach, California, TABC decreased
water consumption by reusing reject water from a reverse
osmosis unit in other, non-critical processes. TABC was
one of Toyota’s first plants to reach its hazardous waste
reduction target, and is currently using Toyota “5Rs”
Program for Waste Reduction to reduce landfill disposal
of non-hazardous wastes.
Toyota Motor Manufacturing, Alabama, Inc.
(TMMAL) — In Huntsville, Alabama, TMMAL, our
newest manufacturing facility, started up as a zero wasteto-landfill facility. To make this possible, TMMAL made
it easier for team members to collect paper, plastic,
cardboard and other recyclable materials. The plant
installed a briquetter that makes it easier to recycle metal
sludge that might otherwise have ended up in a landfill.
TMMAL participates in the City of Huntsville’s waste-toenergy program: Waste
that can’t be recycled
is trucked to a city
facility that burns it to
create energy. TMMAL
designed the plant’s
lighting, heating,
ventilation and air
conditioning units and
chilled water systems
to conserve energy.
Toyota Motor Manufacturing, Canada, Inc. (TMMC) —
In Cambridge, Ontario, TMMC installed a new waterborne
cartridge paint system in its Lexus RX 330 body paint
shop to reduce emissions of volatile organic compounds.
TMMC recycles paint sludge for use in making plastic
highway guard-rail insulators and parking lot blocks, and
reprogrammed robots applying Polyvinyl Chloride, PVC,
to the underside of our vehicles, eliminating excess PVC
that dripped onto the floor and, previously, went to landfill.
TMMC also installed new air compressor controls, reducing
energy use by approximately 15 percent. The plant also
installed waterless urinals, reducing water usage by 51,000
gallons per month.
Toyota Motor Manufacturing, Kentucky, Inc. (TMMK) —
In Georgetown, Kentucky, TMMK refurbished the paint
shop in Plant One which is projected to reduce VOC
emissions by nearly 30 percent. The plant created Earth
Care Centers to improve segregation of recyclable
materials, and diverted more than 120 tons of plastic,
cardboard, paper, glass and other items from landfill. In
addition, TMMK is implementing pilot projects to reduce
waste and recycle/reuse wastewater and reduce the use of
water. Finally, Toyota is developing TMMK as a model
plant for energy reduction in paint shops.
Toyota Motor Manufacturing, Indiana, Inc. (TMMI) —
In Princeton, Indiana, TMMI focused on reducing energy
use during non-productive times and equipped its new
East Plant with a waterborne cartridge painting system
that reduces emissions of volatile organic compounds.
Toyota is installing metal briquetters like the one shown at TMMAL in
order to allow recycling of metal sludges that were previously landfilled
due to the inability of recyclers to handle the previously wet-oily waste.
page forty
TOYOTA N ORTH A MERICA
E NVIRONMENTAL R EPORT 2003
Group Leader, Mike Dennis puts parts for recycling into the Earth Care
Center, created by Toyota Motor Manufacturing, Kentucky, Inc., to improve
segregation of recyclable materials.
Toyota Motor Manufacturing, West Virginia, Inc.,
(TMMWV) — In Buffalo, West Virginia, TMMWV
completed initial implementation of a zero waste-tolandfill program at the plant; currently no wastes are
being disposed in landfills. To achieve the goal, the plant
improved its material segregation techniques, installed a
bailer to make recycling of plastics more practical and
installed a briquetter to recycle metal sludge. TMMWV
ships wastewater sludge to a cement kiln for use in making
concrete. Toyota is developing TMMWV as a model plant
for energy reduction, with emphasis on reducing energy
used between shifts and enhancing the compressed air
control system.
page forty-one
L IFE C YCLE III
“Toyota’s at the leading edge of cars with dramatic
new technology that will offer plenty of power,
high mileage and little or no pollution.”
S ALES
— Jim Press, Executive Vice President and
Chief Operating Officer, Toyota Motor Sales, U.S.A., Inc.
AND
DISTRIBUTION
Our sales and distribution organization in the United
States (Toyota Motor Sales, U.S.A., Inc.), in Canada
(Toyota Canada Inc.) and in Mexico (Toyota de Mexico)
is responsible for sales, marketing, distribution, service
and parts support for Toyota, Lexus and Scion* products
in North America.
As with all areas of our business, Toyota continually seeks
to minimize the environmental impacts of the above activities
— emissions, packaging wastes, consumption of water and
energy resources, etc. The following section discusses our
progress and additional targets.
GOAL: ESTABLISH AN ENVIRONMENTAL
MANAGEMENT SYSTEM
Rigorous environmental management systems help us
integrate environmental awareness into long-term and
short-term business strategies as well as everyday operations.
They also help us achieve progress against our environmental
goals and targets and make it easier to track our performance.
In the United States, we plan to attain ISO 14001 registration
at all appropriate facilities, including vehicle distribution
and parts distribution facilities by FY2005. We also intend
to establish environmental management requirements for
sites not covered in our ISO 14001 program.
In 2001, our Canadian sales and distribution headquarters
in Scarborough, Ontario, became one of the first Toyota
administration offices in the world to achieve ISO 14001
certification/registration. This achievement established
the foundation on which we have been building towards
our Canadian goal of ISO 14001 certification/registration
at all vehicle and parts distribution centers by end of
FY2003, and at all other facilities across Canada by FY2004.
* United States only
TARGET: ISO 14001 CERTIFICATION/REGISTRATION
AT ALL PARTS AND VEHICLE DISTRIBUTION
CENTERS BY FY2005 IN THE UNITED STATES
AND BY FY2003 IN CANADA
We remain on schedule to meet our ISO 14001 certification/
registration goal. 18 of 21 North American parts and vehicle
distribution centers have been ISO 14001 certified/registered.
We also actively encourage our after-market parts and
accessories suppliers to implement an environmental
management system wherever possible.
In early 2003, we surveyed these suppliers and found that
49 percent of them had obtained ISO 14001 certification/
registration and an additional 33 percent were in the process
of obtaining ISO 14001 certification/registration. As part of
our effort to communicate with suppliers on environmental
issues, we invited the Toyota Motor Sales Supplier Alliance
to send representatives to our Annual Compliance
Conference in February 2003; at the conference, they
presented an overview of some of their member companies’
environmental activities.
GOAL: PROMOTE EXCELLENCE IN HANDLING
AND TRANSPORTING HAZARDOUS
MATERIALS/DANGEROUS GOODS
Some of our vehicle components we ship in North America,
such as air bag modules, seat-belt pretensioners, paint and
refrigerants, are considered hazardous materials,
or HAZMAT, designated as “dangerous goods” in Canada.
We must receive, store and ship these materials safely and
in compliance with all applicable regulations.
Our comprehensive HAZMAT/dangerous goods compliance
plan aims to keep us 100 percent in compliance and
to establish the best practices in our industry, while
protecting our customers, associates, the community
and the environment.
Main: Dale Moorlag, transport operations team leader, Toyota Logistics Services, Inc., Long Beach, California, checks one of
several Toyota vehicle delivery trucks equipped with a new fuel catalyst. Toyota is testing the catalyst to learn if it can
reduce air emissions.
E NVIRONMENTAL R EPORT 2003
page forty-three
L IFE C YCLE III
“Toyota’s at the leading edge of cars with dramatic
new technology that will offer plenty of power,
high mileage and little or no pollution.”
S ALES
— Jim Press, Executive Vice President and
Chief Operating Officer, Toyota Motor Sales, U.S.A., Inc.
AND
DISTRIBUTION
Our sales and distribution organization in the United
States (Toyota Motor Sales, U.S.A., Inc.), in Canada
(Toyota Canada Inc.) and in Mexico (Toyota de Mexico)
is responsible for sales, marketing, distribution, service
and parts support for Toyota, Lexus and Scion* products
in North America.
As with all areas of our business, Toyota continually seeks
to minimize the environmental impacts of the above activities
— emissions, packaging wastes, consumption of water and
energy resources, etc. The following section discusses our
progress and additional targets.
GOAL: ESTABLISH AN ENVIRONMENTAL
MANAGEMENT SYSTEM
Rigorous environmental management systems help us
integrate environmental awareness into long-term and
short-term business strategies as well as everyday operations.
They also help us achieve progress against our environmental
goals and targets and make it easier to track our performance.
In the United States, we plan to attain ISO 14001 registration
at all appropriate facilities, including vehicle distribution
and parts distribution facilities by FY2005. We also intend
to establish environmental management requirements for
sites not covered in our ISO 14001 program.
In 2001, our Canadian sales and distribution headquarters
in Scarborough, Ontario, became one of the first Toyota
administration offices in the world to achieve ISO 14001
certification/registration. This achievement established
the foundation on which we have been building towards
our Canadian goal of ISO 14001 certification/registration
at all vehicle and parts distribution centers by end of
FY2003, and at all other facilities across Canada by FY2004.
* United States only
TARGET: ISO 14001 CERTIFICATION/REGISTRATION
AT ALL PARTS AND VEHICLE DISTRIBUTION
CENTERS BY FY2005 IN THE UNITED STATES
AND BY FY2003 IN CANADA
We remain on schedule to meet our ISO 14001 certification/
registration goal. 18 of 21 North American parts and vehicle
distribution centers have been ISO 14001 certified/registered.
We also actively encourage our after-market parts and
accessories suppliers to implement an environmental
management system wherever possible.
In early 2003, we surveyed these suppliers and found that
49 percent of them had obtained ISO 14001 certification/
registration and an additional 33 percent were in the process
of obtaining ISO 14001 certification/registration. As part of
our effort to communicate with suppliers on environmental
issues, we invited the Toyota Motor Sales Supplier Alliance
to send representatives to our Annual Compliance
Conference in February 2003; at the conference, they
presented an overview of some of their member companies’
environmental activities.
GOAL: PROMOTE EXCELLENCE IN HANDLING
AND TRANSPORTING HAZARDOUS
MATERIALS/DANGEROUS GOODS
Some of our vehicle components we ship in North America,
such as air bag modules, seat-belt pretensioners, paint and
refrigerants, are considered hazardous materials,
or HAZMAT, designated as “dangerous goods” in Canada.
We must receive, store and ship these materials safely and
in compliance with all applicable regulations.
Our comprehensive HAZMAT/dangerous goods compliance
plan aims to keep us 100 percent in compliance and
to establish the best practices in our industry, while
protecting our customers, associates, the community
and the environment.
Main: Dale Moorlag, transport operations team leader, Toyota Logistics Services, Inc., Long Beach, California, checks one of
several Toyota vehicle delivery trucks equipped with a new fuel catalyst. Toyota is testing the catalyst to learn if it can
reduce air emissions.
E NVIRONMENTAL R EPORT 2003
page forty-three
L IFE C YCLE III
Toyota is exploring opportunities to use
renewable energy sources. As a first step,
we are using photovoltaic solar panels on our
new Torrance, Calif., South Campus buildings.
Toyota North America Vehicle
and Parts Distribution Centers
with ISO 14001 Certification
ISO 14001 Certification/Registration Status
Location
Georgetown, Ky.*
Long Beach, Calif.
Fremont, Calif.
Portland, Ore.
Portland, Ore.
Princeton, Ind.*
Newark, N.J.
Boston, Mass.
Baltimore, Md.
San Ramon, Calif.
Kansas City, Mo.
Cincinnati, Ohio
Toronto, Ont.
Los Angeles, Calif.
Ontario, Calif.
Richmond, B.C.
Scarborough, Ont.
New York, N.Y.
Hebron, Ky.
Chicago, Ill.
Montreal, Que.
Figure X
100%
90%
Percent Certified/Registered (cumulative)
80%
70%
60%
50%
40%
30%
20%
10%
0%
1998
1999
2000
2001
2002
2003*
Calendar Year
Sites Uncertified
*As of August 2003
Legend:
VDC means Vehicle Distribution Center
PDC means Parts Distribution Center
NAPC means North American Parts Center
*These sites were certified under the adjacent Toyota assembly plant.
Sites Certified
TARGET: MAINTAIN 100 PERCENT
COMPLIANCE WITH ALL APPLICABLE
HAZMAT/DANGEROUS GOODS REGULATIONS
We achieved this target in 2002, for the fifth consecutive
year, in both Canada and the United States. However, we
continue to strive to further improve our systems and
processes in coordination with all of our affiliates in
North America.
page forty-four
Facility Type
VDC
VDC
VDC
VDC
PDC
VDC
VDC
PDC & Regional Office
PDC & Regional Office
PDC & Regional Office
PDC & Regional Office
PDC & Regional Office
PDC
PDC
NAPC
PDC
VDC
PDC & Regional Office
NAPC
PDC & Regional Office
VDC
Date Certified
or Registered
November 1998
May 1999
July 1999
September 1999
November 1999
November 1999
January 2000
January 2000
December 2000
March 2001
August 2001
August 2001
November 2001
July 2002
September 2002
November 2002
November 2002
August 2003
Est. December 2003
Est. December 2003
Est. December 2003
We also play an active role in industry associations
including The Council of the Safe Transport of
Hazardous Articles; The Dangerous Goods Advisory
Council; and the North American Automotive Hazard
Action Committee, comprising automotive manufacturers
and suppliers of related parts. Within these associations,
we share best practices and assist others in presenting the
industry’s position regarding future legislation.
GOAL: REDUCE WASTE
AND CONSERVE RESOURCES
As in other areas, reducing waste and conserving resources
are high priority concerns. Our five-year environmental
action plan sets four key targets for waste management.
TOYOTA N ORTH A MERICA
TARGET: IMPLEMENT NATIONWIDE
WASTE-TRACKING PROGRAM
We implemented a Web-based waste-tracking system in
the United States that makes it easier to collect and analyze
data. In Canada, we’re considering a similar waste-tracking
program for the future, where it will enable us to set
waste-reduction targets for our Canadian facilities.
The electronic system generates automatic e-mail reminders
each month requesting waste and recycling information
from each sales and distribution site. Our environmental
site coordinators enter the data on a central Web site and
the system generates reports that enable us to analyze data
at the site, business unit and entity-wide level. Toyota plans
to incorporate this data into its worldwide tracking of
logistics and supply waste-management metrics in FY2004.
TARGET: SET NATIONWIDE
WASTE-REDUCTION TARGETS
In the United States, we will have comprehensive nationwide
waste-reduction targets in place in FY2004. Each group
within the organization is contributing to the development
of the targets. Some have collected necessary data and set
baseline levels, while others are still working on them.
We expect to roll out the full waste-reduction program
for our supply and logistics operations in FY2005. At
that time we will conduct training and other educational
activities to make people aware of the new targets, and
what they can do to help achieve them.
As part of this on-going process, our U.S. parts distribution
centers have already established a waste baseline and
reduction target for their operations. Historically, parts
distribution operations have generated 4,000 pounds of
solid waste per million dollars’ worth of parts distributed.
Our centers have set a goal to reduce that by 10 percent
by the end of FY2004.
As already reported here and in earlier environmental
reports, many of our facilities have set individual facility
targets, and are meeting their objectives. However, these
will be incorporated into a fully comprehensive wastereduction program in FY2005.
Toyota Motor Sales, U.S.A., Inc.’s nationwide computer
recycling program, in FY2003, diverted approximately
270,916 pounds of computer equipment from landfills —
desktops, laptops, monitors, servers, printers and other
miscellaneous electronic equipment — an increase of
almost 40 percent over the FY2002 figure.
Proper disposal or recycling of computer and related
equipment is of particular importance, since most IT
equipment contains hazardous materials/dangerous
goods such as lead and other toxins that have the potential
to pollute water supplies. In addition, storage devices
such as hard drives can contain sensitive corporate
information, which must be completely erased from
the storage device before recycling or disposal.
RIVER CLEAN-UP IN PUERTO RICO
Samuel Iván Alejandro Rivera, a local student in Puerto Rico, expressed
concern over the number of old cars and debris dumped in the Rio
Indio River. Toyota de Puerto Rico heard about the story through a
local environmental group, Yo Limpio a Puerto Rico. Toyota worked
with the group to clean up the river, spending $100,000 to remove
the waste material. The action attracted positive attention from local
politicians, as well as the Puerto Rico Departments of Transportation
and Environmental Protection. In this photograph, Samuel and Mario
Dávila, president of Toyota de Puerto Rico, enjoy the cleaner river.
E NVIRONMENTAL R EPORT 2003
page forty-five
L IFE C YCLE III
Toyota is exploring opportunities to use
renewable energy sources. As a first step,
we are using photovoltaic solar panels on our
new Torrance, Calif., South Campus buildings.
Toyota North America Vehicle
and Parts Distribution Centers
with ISO 14001 Certification
ISO 14001 Certification/Registration Status
Location
Georgetown, Ky.*
Long Beach, Calif.
Fremont, Calif.
Portland, Ore.
Portland, Ore.
Princeton, Ind.*
Newark, N.J.
Boston, Mass.
Baltimore, Md.
San Ramon, Calif.
Kansas City, Mo.
Cincinnati, Ohio
Toronto, Ont.
Los Angeles, Calif.
Ontario, Calif.
Richmond, B.C.
Scarborough, Ont.
New York, N.Y.
Hebron, Ky.
Chicago, Ill.
Montreal, Que.
Figure X
100%
90%
Percent Certified/Registered (cumulative)
80%
70%
60%
50%
40%
30%
20%
10%
0%
1998
1999
2000
2001
2002
2003*
Calendar Year
Sites Uncertified
*As of August 2003
Legend:
VDC means Vehicle Distribution Center
PDC means Parts Distribution Center
NAPC means North American Parts Center
*These sites were certified under the adjacent Toyota assembly plant.
Sites Certified
TARGET: MAINTAIN 100 PERCENT
COMPLIANCE WITH ALL APPLICABLE
HAZMAT/DANGEROUS GOODS REGULATIONS
We achieved this target in 2002, for the fifth consecutive
year, in both Canada and the United States. However, we
continue to strive to further improve our systems and
processes in coordination with all of our affiliates in
North America.
page forty-four
Facility Type
VDC
VDC
VDC
VDC
PDC
VDC
VDC
PDC & Regional Office
PDC & Regional Office
PDC & Regional Office
PDC & Regional Office
PDC & Regional Office
PDC
PDC
NAPC
PDC
VDC
PDC & Regional Office
NAPC
PDC & Regional Office
VDC
Date Certified
or Registered
November 1998
May 1999
July 1999
September 1999
November 1999
November 1999
January 2000
January 2000
December 2000
March 2001
August 2001
August 2001
November 2001
July 2002
September 2002
November 2002
November 2002
August 2003
Est. December 2003
Est. December 2003
Est. December 2003
We also play an active role in industry associations
including The Council of the Safe Transport of
Hazardous Articles; The Dangerous Goods Advisory
Council; and the North American Automotive Hazard
Action Committee, comprising automotive manufacturers
and suppliers of related parts. Within these associations,
we share best practices and assist others in presenting the
industry’s position regarding future legislation.
GOAL: REDUCE WASTE
AND CONSERVE RESOURCES
As in other areas, reducing waste and conserving resources
are high priority concerns. Our five-year environmental
action plan sets four key targets for waste management.
TOYOTA N ORTH A MERICA
TARGET: IMPLEMENT NATIONWIDE
WASTE-TRACKING PROGRAM
We implemented a Web-based waste-tracking system in
the United States that makes it easier to collect and analyze
data. In Canada, we’re considering a similar waste-tracking
program for the future, where it will enable us to set
waste-reduction targets for our Canadian facilities.
The electronic system generates automatic e-mail reminders
each month requesting waste and recycling information
from each sales and distribution site. Our environmental
site coordinators enter the data on a central Web site and
the system generates reports that enable us to analyze data
at the site, business unit and entity-wide level. Toyota plans
to incorporate this data into its worldwide tracking of
logistics and supply waste-management metrics in FY2004.
TARGET: SET NATIONWIDE
WASTE-REDUCTION TARGETS
In the United States, we will have comprehensive nationwide
waste-reduction targets in place in FY2004. Each group
within the organization is contributing to the development
of the targets. Some have collected necessary data and set
baseline levels, while others are still working on them.
We expect to roll out the full waste-reduction program
for our supply and logistics operations in FY2005. At
that time we will conduct training and other educational
activities to make people aware of the new targets, and
what they can do to help achieve them.
As part of this on-going process, our U.S. parts distribution
centers have already established a waste baseline and
reduction target for their operations. Historically, parts
distribution operations have generated 4,000 pounds of
solid waste per million dollars’ worth of parts distributed.
Our centers have set a goal to reduce that by 10 percent
by the end of FY2004.
As already reported here and in earlier environmental
reports, many of our facilities have set individual facility
targets, and are meeting their objectives. However, these
will be incorporated into a fully comprehensive wastereduction program in FY2005.
Toyota Motor Sales, U.S.A., Inc.’s nationwide computer
recycling program, in FY2003, diverted approximately
270,916 pounds of computer equipment from landfills —
desktops, laptops, monitors, servers, printers and other
miscellaneous electronic equipment — an increase of
almost 40 percent over the FY2002 figure.
Proper disposal or recycling of computer and related
equipment is of particular importance, since most IT
equipment contains hazardous materials/dangerous
goods such as lead and other toxins that have the potential
to pollute water supplies. In addition, storage devices
such as hard drives can contain sensitive corporate
information, which must be completely erased from
the storage device before recycling or disposal.
RIVER CLEAN-UP IN PUERTO RICO
Samuel Iván Alejandro Rivera, a local student in Puerto Rico, expressed
concern over the number of old cars and debris dumped in the Rio
Indio River. Toyota de Puerto Rico heard about the story through a
local environmental group, Yo Limpio a Puerto Rico. Toyota worked
with the group to clean up the river, spending $100,000 to remove
the waste material. The action attracted positive attention from local
politicians, as well as the Puerto Rico Departments of Transportation
and Environmental Protection. In this photograph, Samuel and Mario
Dávila, president of Toyota de Puerto Rico, enjoy the cleaner river.
E NVIRONMENTAL R EPORT 2003
page forty-five
L IFE C YCLE III
Figure Y
CLOSED LOOP RETURNABLE PACKAGING
OPEN LOOP RETURNABLE PACKAGING
GOAL: REDUCE GREENHOUSE GASES
Part Center
Regional Distribution Centers
Private Distributors
TARGET: IMPLEMENT A RETURNABLE
TARGET: INCREASE RETURNABLE PACKAGING
PACKAGING PROGRAM AT PARTS
DISTRIBUTION CENTERS
This is our third waste-management target and we were
successful in achieving it. In FY2003, our parts distribution
centers saved 536,270 pounds of cardboard and 1,670,014
pounds of wood, saving more than $1 million in the process.
AND DIRECT SHIPMENT PROGRAMS TO
VEHICLE DISTRIBUTION CENTERS
We also achieved the fourth and last waste-management
target. Three direct shipment programs were created
using returnable containers for the distribution of carpet
mats used in the Camry, Sienna and RAV4. We also made
improvements in bulk shipments and packaging for vehicle
distribution centers in 2003. The kaizen, or continuous
improvement, saved more than 92,000 pounds of cardboard,
77,000 pounds of wood and more than $250,000.
We made significant progress in preparing to establish
a returnable packaging program, thanks to the active
participation of our large-parts centers and regional
parts distribution centers, as well as three additional
distributors: Gulf States Toyota, Inc., Southeast
Toyota Distributors, LLC and Toyota Canada Inc.
Our current “closed loop” program utilizes returnable
packaging among facilities in the same geographic region
of the country, but not between facilities in different regions.
In FY2004, we will launch an “open loop” returnables
program that will enable us to link many more facilities,
adding considerably to the use of returnable packaging
across the organization (see Figure Y above). We estimate
this will enable us to save an additional two million
pounds of wood, 800,000 pounds more cardboard and
over $1.8 million in gross packaging costs.
BEV SMITH TOYOTA REWARDED FOR RECYCLING EFFORTS
One of our Toyota dealerships, Bev Smith Toyota, Ft. Pierce,
Florida, received the first St. Lucie County Commercial Recycling
Partnership award. The award recognized the dealership efforts
to recycle waste paper, cardboard, aluminum cans, plastic bottles,
etc. Bev Smith Toyota reduced solid waste sent to the local
landfill by approximately 50 percent, eliminating an eight cubic
yard container and reducing expenses.
page forty-six
GOAL: REDUCE ENERGY USE
Toyota is strongly committed to reducing energy use.
As a first step, we set a target to establish an energy usage
database, updated monthly, for all sales and distribution
facilities. We have achieved the target, and after analysis
of data generated by the database, we have set an energy
reduction target for our sales and distribution facilities
in the United States.
TARGET: REDUCE TOTAL ENERGY CONSUMPTION
IN THE UNITED STATES 15 PERCENT BY 2006
We have already made progress towards this target. By
March 2003, we decreased energy consumption by 7.5
percent from the baseline established in 2000. We saved
7,364,000 kilowatt hours of electric energy, 496,000 therms
of natural gas and reduced expenses by approximately
$800,000. We accomplished these savings by installing
energy efficient equipment and lighting, better control
systems and devices such as occupancy sensors that turn
room lights on or off when a person enters or leaves. We
have planned more energy-saving projects for 2004.
TOYOTA N ORTH A MERICA
Last year, in the United States, as a first step in developing
a greenhouse gas reduction strategy, we set a target of
compiling an inventory of greenhouse gases, often abbreviated
as GHG, by FY2004. We achieved the target, using a
protocol developed by the World Resources Institute and
the World Business Council on Sustainable Development.
The scope of the inventory includes GHG emissions from
electricity use and natural gas use; and indirect sources
such as business travel, employee commuting, and vehicle
parts and logistics activities. Our greenhouse gas inventory
measures tons of GHG emissions on an absolute and
normalized basis.
NOVATO TOYOTA RECOGNIZED BY
GREEN BUSINESS PROGRAM
In April 2003, Novato Toyota, Inc., a dealership located in Novato,
California, received the “Marin County Green Business Certificate
of Compliance” from The Bay Area Green Business Program.
To receive certification, the dealership had to be in compliance
with all regulations and meet program standards for conserving
resources, preventing pollution and minimizing waste. In addition
to meeting the criteria, Novato Toyota provides customers with a
Prius as a loaner vehicle while their cars are being serviced.
The Bay Area Green Business Program is a partnership of
environmental agencies and utilities that assists, recognizes and
promotes businesses and government agencies that volunteer
to operate in a more environmentally responsible way.
Our logistics operation is complex, involving shipment
of both fully-assembled vehicles and individual parts and
components by road, rail, ship and air transport systems,
some independent and some Toyota-owned. This complexity
makes measuring our GHG emissions a challenging task.
However, having created a successful model, we are now
evaluating established environmental activities where
GHG-reduction targets will be most effective.
For example, we are evaluating a potential emissions
reduction technology for the trucks that deliver our new
vehicles to dealers. In January 2003, Toyota Transport, our
in-house vehicle logistics group, installed and began testing
a new fuel catalyst on some of our transport trucks to see
if the catalyst can reduce a range of emissions, namely
carbon dioxide, carbon monoxide, nitrogen oxides and
particulate matter. If the results are positive, we’ll consider
installing the device on all 55 in-house trucks.
(Left to right) Michael Di Giorgio, mayor, City of Novato, California,
Cynthia Murray, supervisor, Fifth District Marin County, and Sam
Ruark, sustainability assistant planner, Community Development
Agency, present the Bay Area Green Business Program’s certification
as a Green Business to Herb Lakritz, president, and Geoff Lakritz,
service and parts coordinator, Novato Toyota, Inc.
We are also looking at how our energy use goal and projects
such as the photovoltaic solar energy rooftop system at our
Torrance, California, South Campus headquarters complex
fit into our overall action plan for managing GHG emissions.
E NVIRONMENTAL R EPORT 2003
page forty-seven
L IFE C YCLE III
Figure Y
CLOSED LOOP RETURNABLE PACKAGING
OPEN LOOP RETURNABLE PACKAGING
GOAL: REDUCE GREENHOUSE GASES
Part Center
Regional Distribution Centers
Private Distributors
TARGET: IMPLEMENT A RETURNABLE
TARGET: INCREASE RETURNABLE PACKAGING
PACKAGING PROGRAM AT PARTS
DISTRIBUTION CENTERS
This is our third waste-management target and we were
successful in achieving it. In FY2003, our parts distribution
centers saved 536,270 pounds of cardboard and 1,670,014
pounds of wood, saving more than $1 million in the process.
AND DIRECT SHIPMENT PROGRAMS TO
VEHICLE DISTRIBUTION CENTERS
We also achieved the fourth and last waste-management
target. Three direct shipment programs were created
using returnable containers for the distribution of carpet
mats used in the Camry, Sienna and RAV4. We also made
improvements in bulk shipments and packaging for vehicle
distribution centers in 2003. The kaizen, or continuous
improvement, saved more than 92,000 pounds of cardboard,
77,000 pounds of wood and more than $250,000.
We made significant progress in preparing to establish
a returnable packaging program, thanks to the active
participation of our large-parts centers and regional
parts distribution centers, as well as three additional
distributors: Gulf States Toyota, Inc., Southeast
Toyota Distributors, LLC and Toyota Canada Inc.
Our current “closed loop” program utilizes returnable
packaging among facilities in the same geographic region
of the country, but not between facilities in different regions.
In FY2004, we will launch an “open loop” returnables
program that will enable us to link many more facilities,
adding considerably to the use of returnable packaging
across the organization (see Figure Y above). We estimate
this will enable us to save an additional two million
pounds of wood, 800,000 pounds more cardboard and
over $1.8 million in gross packaging costs.
BEV SMITH TOYOTA REWARDED FOR RECYCLING EFFORTS
One of our Toyota dealerships, Bev Smith Toyota, Ft. Pierce,
Florida, received the first St. Lucie County Commercial Recycling
Partnership award. The award recognized the dealership efforts
to recycle waste paper, cardboard, aluminum cans, plastic bottles,
etc. Bev Smith Toyota reduced solid waste sent to the local
landfill by approximately 50 percent, eliminating an eight cubic
yard container and reducing expenses.
page forty-six
GOAL: REDUCE ENERGY USE
Toyota is strongly committed to reducing energy use.
As a first step, we set a target to establish an energy usage
database, updated monthly, for all sales and distribution
facilities. We have achieved the target, and after analysis
of data generated by the database, we have set an energy
reduction target for our sales and distribution facilities
in the United States.
TARGET: REDUCE TOTAL ENERGY CONSUMPTION
IN THE UNITED STATES 15 PERCENT BY 2006
We have already made progress towards this target. By
March 2003, we decreased energy consumption by 7.5
percent from the baseline established in 2000. We saved
7,364,000 kilowatt hours of electric energy, 496,000 therms
of natural gas and reduced expenses by approximately
$800,000. We accomplished these savings by installing
energy efficient equipment and lighting, better control
systems and devices such as occupancy sensors that turn
room lights on or off when a person enters or leaves. We
have planned more energy-saving projects for 2004.
TOYOTA N ORTH A MERICA
Last year, in the United States, as a first step in developing
a greenhouse gas reduction strategy, we set a target of
compiling an inventory of greenhouse gases, often abbreviated
as GHG, by FY2004. We achieved the target, using a
protocol developed by the World Resources Institute and
the World Business Council on Sustainable Development.
The scope of the inventory includes GHG emissions from
electricity use and natural gas use; and indirect sources
such as business travel, employee commuting, and vehicle
parts and logistics activities. Our greenhouse gas inventory
measures tons of GHG emissions on an absolute and
normalized basis.
NOVATO TOYOTA RECOGNIZED BY
GREEN BUSINESS PROGRAM
In April 2003, Novato Toyota, Inc., a dealership located in Novato,
California, received the “Marin County Green Business Certificate
of Compliance” from The Bay Area Green Business Program.
To receive certification, the dealership had to be in compliance
with all regulations and meet program standards for conserving
resources, preventing pollution and minimizing waste. In addition
to meeting the criteria, Novato Toyota provides customers with a
Prius as a loaner vehicle while their cars are being serviced.
The Bay Area Green Business Program is a partnership of
environmental agencies and utilities that assists, recognizes and
promotes businesses and government agencies that volunteer
to operate in a more environmentally responsible way.
Our logistics operation is complex, involving shipment
of both fully-assembled vehicles and individual parts and
components by road, rail, ship and air transport systems,
some independent and some Toyota-owned. This complexity
makes measuring our GHG emissions a challenging task.
However, having created a successful model, we are now
evaluating established environmental activities where
GHG-reduction targets will be most effective.
For example, we are evaluating a potential emissions
reduction technology for the trucks that deliver our new
vehicles to dealers. In January 2003, Toyota Transport, our
in-house vehicle logistics group, installed and began testing
a new fuel catalyst on some of our transport trucks to see
if the catalyst can reduce a range of emissions, namely
carbon dioxide, carbon monoxide, nitrogen oxides and
particulate matter. If the results are positive, we’ll consider
installing the device on all 55 in-house trucks.
(Left to right) Michael Di Giorgio, mayor, City of Novato, California,
Cynthia Murray, supervisor, Fifth District Marin County, and Sam
Ruark, sustainability assistant planner, Community Development
Agency, present the Bay Area Green Business Program’s certification
as a Green Business to Herb Lakritz, president, and Geoff Lakritz,
service and parts coordinator, Novato Toyota, Inc.
We are also looking at how our energy use goal and projects
such as the photovoltaic solar energy rooftop system at our
Torrance, California, South Campus headquarters complex
fit into our overall action plan for managing GHG emissions.
E NVIRONMENTAL R EPORT 2003
page forty-seven
L IFE C YCLE III
Lori Sonnier, environmental specialist, demonstrates an interactive
touch screen that monitors readings from the 536 kW solar electric
rooftop system, at Toyota’s award-winning South Campus headquarters
complex in Torrance, California. The kiosk is outside the cafeteria in the
South Campus complex, so all associates can monitor how much energy
the solar panels are generating and how many emissions are being
avoided by this renewable energy source.
GOAL: PROMOTE ENVIRONMENTAL
RESPONSIBILIT Y AMONG DEALERS
There are more than 1,400 franchised Toyota and Lexus
dealerships in the United States, and 233 across Canada,
operating as independent businesses. We support and
encourage their efforts in pursuing environmental excellence.
TARGET: ADD ENHANCED FEATURES TO THE
ENVIRONMENTAL ASSISTANCE NET WORK
Launched in the United States in 2001, the Environmental
Assistance Network, or EAN, provides dealers with an
easy-access resource and planning tool, which supplies
information from federal, state and many local regulatory
agencies in one convenient location. Over the course of
the past year, the EAN Web site has seen numerous
improvements including additions to state and local
regulatory content and improved navigation for the
AWARE newsletter.
This year we focused on tracking and expanding use of
the Web site, which continues to increase. Service managers
and parts directors use the site regularly. Since the beginning
of the year we have averaged 50 visitors per week, who
spend approximately 10 minutes per visit. Some use EAN
to determine critical storage requirements for coolants,
chemicals and oils, while others use the site as a tool to
build facility equipment requirements for things like
environmentally advanced vehicle hoists and paint booths.
TARGET: INTRODUCE TOYOTA
ENVIRONMENTAL GUIDELINES TO THE
CANADIAN DEALER NET WORK BY 2004
We’re developing an environmental strategy and
guidelines to encourage environmental regulatory
compliance at all Toyota and Lexus dealers across
Canada by 2004.
TARGET: ACHIEVE LEED™ CERTIFICATION
We are developing province-specific posters and
brochures for our Canadian dealerships that help
employees understand their responsibilities regarding
environmental regulatory compliance.
We will also be publishing a quarterly newsletter, with
pertinent regulatory compliance information. We’ll forward
it to our dealers via Infostream, a communication tool we
developed to pass information to and from our dealerships.
We also offer dealers assistance in running environmentally
sound businesses, including:
• Providing general information to dealers on the
proper procedures for transporting, handling,
storing and disposing of dangerous goods;
• Establishing a nationwide lead-acid battery program
to recover batteries from our Canadian dealers;
• Establishing an oil recovery program in the
provinces of Alberta, Saskatchewan, Manitoba,
and British Columbia to collect and recycle used
oil, oil filters and oil containers from dealerships.
We are looking at opportunities to expand this
program. For example, the province of Ontario
should begin its program by 2004;
• Offering a subsidy on the price of new oil to help
dealers pay the cost of properly disposing of used oil;
• Establishing a nationwide collection and
recycling program for nickel-metal hydride
batteries from Prius hybrid vehicles.
GOAL: PROMOTE GREENER BUILDING
CONSTRUCTION AND MAINTENANCE OPERATIONS
Toyota Motor Sales has developed Process Green (see page
18 for a more complete discussion) to ensure that we use
practices and products that are sustainable, address enduse cost and meet business needs in a socially responsible
manner. The process includes building systems and
materials, as well as products used by the custodial staff.
TARGET: DEVELOP SUSTAINABLE
OPERATIONS STANDARDS FOR TOYOTA
MOTOR SALES, U.S.A., INC.’S FACILITIES
We want to continue implementing these types of Process
Green initiatives in other projects. Consequently, we
established a new target: Develop sustainable operations
standards for all Toyota sales and distribution facilities.
Toyota develops an environmental strategy for every
new building or renovation project before work begins.
To improve the sustainability of our maintenance
operations, we worked with our maintenance business
partner to eliminate 45 of 60 different cleaning agents
used at our headquarters complex. We also decreased
waste by installing a new dispensing system for concentrated
cleaning solutions and introduced 11 Green Seal-certified
cleaning products. We’re currently evaluating other supplies
such as plastic garbage liners, bathroom paper products
and hand soaps.
FOR THE UNITED STATES SALES HEADQUARTERS
SOUTH CAMPUS COMPLEX BUILDINGS BY THE
END OF 2003
We achieved this goal, which illustrates Process Green
at work. In 2003, our South Campus headquarters
complex in Torrance, California, received the Gold
Leadership in Energy and Environmental Design, LEED™,
award from the U.S. Green Building Council under its
green building certification program. To date, our new
facility is the largest Gold LEED-certified project in the
United States.
The buildings include environmental building initiatives
to eliminate greenhouse gases, reduce waste, consumption
of water and energy. For example, we installed water
saving features such as drip irrigation, drought-tolerant
plantings, low-flow toilets and waterless urinals, etc.
Together these improvements will conserve 11 million
gallons of drinking water annually.
During the construction, we recycled 96 percent of the
waste, diverting 410 tons of solid waste from landfills. In
addition, more than 80 percent of the construction
materials contain recycled content. For example, all
structural steel is made from recycled metals — mostly
from automobiles.
We installed a roof-mounted, 536 kW photovoltaic solar
energy system that will generate enough electricity to
power 500 homes each year of its 25-year lifespan, while
reducing carbon dioxide emissions by as much as 167
tons annually, or 4,181 tons over the expected 25-year
lifespan of the system.*
The buildings are free of formaldehydes and hydrochlorofluorocarbons, which are greenhouse gases. The elevators
in the buildings use vegetable-based rather than petroleumbased hydraulic fluid.
*Based on the U.S. Environmental Protection Agency’s
E-GRID2000 database using 1998 utility mix data.
page forty-eight
TOYOTA N ORTH A MERICA
E NVIRONMENTAL R EPORT 2003
page forty-nine
L IFE C YCLE III
Lori Sonnier, environmental specialist, demonstrates an interactive
touch screen that monitors readings from the 536 kW solar electric
rooftop system, at Toyota’s award-winning South Campus headquarters
complex in Torrance, California. The kiosk is outside the cafeteria in the
South Campus complex, so all associates can monitor how much energy
the solar panels are generating and how many emissions are being
avoided by this renewable energy source.
GOAL: PROMOTE ENVIRONMENTAL
RESPONSIBILIT Y AMONG DEALERS
There are more than 1,400 franchised Toyota and Lexus
dealerships in the United States, and 233 across Canada,
operating as independent businesses. We support and
encourage their efforts in pursuing environmental excellence.
TARGET: ADD ENHANCED FEATURES TO THE
ENVIRONMENTAL ASSISTANCE NET WORK
Launched in the United States in 2001, the Environmental
Assistance Network, or EAN, provides dealers with an
easy-access resource and planning tool, which supplies
information from federal, state and many local regulatory
agencies in one convenient location. Over the course of
the past year, the EAN Web site has seen numerous
improvements including additions to state and local
regulatory content and improved navigation for the
AWARE newsletter.
This year we focused on tracking and expanding use of
the Web site, which continues to increase. Service managers
and parts directors use the site regularly. Since the beginning
of the year we have averaged 50 visitors per week, who
spend approximately 10 minutes per visit. Some use EAN
to determine critical storage requirements for coolants,
chemicals and oils, while others use the site as a tool to
build facility equipment requirements for things like
environmentally advanced vehicle hoists and paint booths.
TARGET: INTRODUCE TOYOTA
ENVIRONMENTAL GUIDELINES TO THE
CANADIAN DEALER NET WORK BY 2004
We’re developing an environmental strategy and
guidelines to encourage environmental regulatory
compliance at all Toyota and Lexus dealers across
Canada by 2004.
TARGET: ACHIEVE LEED™ CERTIFICATION
We are developing province-specific posters and
brochures for our Canadian dealerships that help
employees understand their responsibilities regarding
environmental regulatory compliance.
We will also be publishing a quarterly newsletter, with
pertinent regulatory compliance information. We’ll forward
it to our dealers via Infostream, a communication tool we
developed to pass information to and from our dealerships.
We also offer dealers assistance in running environmentally
sound businesses, including:
• Providing general information to dealers on the
proper procedures for transporting, handling,
storing and disposing of dangerous goods;
• Establishing a nationwide lead-acid battery program
to recover batteries from our Canadian dealers;
• Establishing an oil recovery program in the
provinces of Alberta, Saskatchewan, Manitoba,
and British Columbia to collect and recycle used
oil, oil filters and oil containers from dealerships.
We are looking at opportunities to expand this
program. For example, the province of Ontario
should begin its program by 2004;
• Offering a subsidy on the price of new oil to help
dealers pay the cost of properly disposing of used oil;
• Establishing a nationwide collection and
recycling program for nickel-metal hydride
batteries from Prius hybrid vehicles.
GOAL: PROMOTE GREENER BUILDING
CONSTRUCTION AND MAINTENANCE OPERATIONS
Toyota Motor Sales has developed Process Green (see page
18 for a more complete discussion) to ensure that we use
practices and products that are sustainable, address enduse cost and meet business needs in a socially responsible
manner. The process includes building systems and
materials, as well as products used by the custodial staff.
TARGET: DEVELOP SUSTAINABLE
OPERATIONS STANDARDS FOR TOYOTA
MOTOR SALES, U.S.A., INC.’S FACILITIES
We want to continue implementing these types of Process
Green initiatives in other projects. Consequently, we
established a new target: Develop sustainable operations
standards for all Toyota sales and distribution facilities.
Toyota develops an environmental strategy for every
new building or renovation project before work begins.
To improve the sustainability of our maintenance
operations, we worked with our maintenance business
partner to eliminate 45 of 60 different cleaning agents
used at our headquarters complex. We also decreased
waste by installing a new dispensing system for concentrated
cleaning solutions and introduced 11 Green Seal-certified
cleaning products. We’re currently evaluating other supplies
such as plastic garbage liners, bathroom paper products
and hand soaps.
FOR THE UNITED STATES SALES HEADQUARTERS
SOUTH CAMPUS COMPLEX BUILDINGS BY THE
END OF 2003
We achieved this goal, which illustrates Process Green
at work. In 2003, our South Campus headquarters
complex in Torrance, California, received the Gold
Leadership in Energy and Environmental Design, LEED™,
award from the U.S. Green Building Council under its
green building certification program. To date, our new
facility is the largest Gold LEED-certified project in the
United States.
The buildings include environmental building initiatives
to eliminate greenhouse gases, reduce waste, consumption
of water and energy. For example, we installed water
saving features such as drip irrigation, drought-tolerant
plantings, low-flow toilets and waterless urinals, etc.
Together these improvements will conserve 11 million
gallons of drinking water annually.
During the construction, we recycled 96 percent of the
waste, diverting 410 tons of solid waste from landfills. In
addition, more than 80 percent of the construction
materials contain recycled content. For example, all
structural steel is made from recycled metals — mostly
from automobiles.
We installed a roof-mounted, 536 kW photovoltaic solar
energy system that will generate enough electricity to
power 500 homes each year of its 25-year lifespan, while
reducing carbon dioxide emissions by as much as 167
tons annually, or 4,181 tons over the expected 25-year
lifespan of the system.*
The buildings are free of formaldehydes and hydrochlorofluorocarbons, which are greenhouse gases. The elevators
in the buildings use vegetable-based rather than petroleumbased hydraulic fluid.
*Based on the U.S. Environmental Protection Agency’s
E-GRID2000 database using 1998 utility mix data.
page forty-eight
TOYOTA N ORTH A MERICA
E NVIRONMENTAL R EPORT 2003
page forty-nine
L IFE C YCLE IV
“It is essential for Toyota as an automaker
to… promote the creation of a sustainable,
R ECYCLING
recycle-oriented society.”
— Toyota Recycle Vision, June 2003
Through numerous initiatives on a global scale,
Toyota is on the leading edge of reducing the environmental
impact of automobiles at the end of their useful life. As
part of this effort, in North America, Toyota is working to
achieve a 95 percent vehicle recovery rate and to reduce
our use of various Substances of Concern.
TARGET: GATHER NORTH AMERICAN BASELINE
DATA FOR SELECTED SUBSTANCES OF CONCERN
Following last year’s Substances of Concern content
analysis of the 2002 Camry, Toyota recently completed a
similar study on the 2004 Solara Coupe. Both analyses
will help us reduce use of Substances of Concern in the
future design of our North American vehicles.
TARGET: DEVELOP FUTURE NORTH
AMERICAN SOC STRATEGY
In accordance with the Toyota Recycle Vision, Toyota
materials, design and production engineers in North
America, Japan and Europe are establishing global
standards for the reduction of Substances of Concern in
all Toyota vehicles. In addition, the Vision’s aggressive
goals for nearly eliminating four key Substances of
Concern in various global regions will positively impact
products introduced to the North American market.
In 2002, we set targets, specific to our North American
vehicles, for eliminating, replacing or reducing use of
critical Substances of Concern, including arsenic,
hexavalent chrome, cadmium, mercury and lead. We
successfully reduced use of Substances of Concern in the
2004 Solara and 2004 Sienna, compared with the previous
generation vehicle. For example, we greatly reduced use of
lead in the Solara by using a lead-free radiator and heater
core, glass-black coating. Additionally we used lead-free
body electro-coat on both the Solara and Sienna.
GOAL: DEVELOP RECYCLING DESIGNS
AND PROMOTE EXPANDED USE OF
RECYCLED MATERIALS
The recyclability of an end-of-life vehicle depends on two
key factors: the economics of handling the end-of-life
vehicle and the initial design of the vehicle. The Toyota
Recycle Vision encourages enhanced recyclable designs
and promotes increased use of renewable resources and
recycled materials.
TARGET: INCORPORATE MATERIAL AND
DESIGN STRATEGIES FOR INCREASED
VEHICLE RECYCLABILIT Y
Below are three recent North American activities which
support our efforts toward reaching a 95 percent vehiclerecovery rate by FY2015.
• Development of recyclable designs for vehicles —
We replaced the Polyvinyl Chloride instrument panel
cover used in the in the 2003 Solara Coupe and 2003
Sienna minivan, with durable thermoplastic urethane
in the North American designed and built 2004 models.
• Use of renewable resources — We expanded our use
of kenaf, a natural material, in the composition of
door-trim components. We are also evaluating the
use of kenaf and a proprietary eco-plastic in future
North American-designed vehicles.
• Expanded utilization of used parts (re-manufacturing
parts for vehicle service applications) – In North America,
Toyota has targets to consistently expand our existing
remanufactured product lines and to develop additional
product lines. During this reporting period, we added
170 additional remanufactured applications to our
existing product lines.
Main: (left to right) Materials Engineers Linh Thompson, Faye Zaski and Janine Bond from the Toyota Technical Center, Ann Arbor, Michigan, display
an instrument panel, used in the 2004 Solara coupe. The new panel employs a thermoplastic urethane outer skin replacing the Polyvinyl
Chloride skin used on the previous generation Solara to address concerns about potential environmental impact of PVC. The
new Thermal Plastic Urethane material is also used on the TTC-designed 2004 Sienna minivan instrument panel.
E NVIRONMENTAL R EPORT 2003
page fifty-one
L IFE C YCLE IV
“It is essential for Toyota as an automaker
to… promote the creation of a sustainable,
R ECYCLING
recycle-oriented society.”
— Toyota Recycle Vision, June 2003
Through numerous initiatives on a global scale,
Toyota is on the leading edge of reducing the environmental
impact of automobiles at the end of their useful life. As
part of this effort, in North America, Toyota is working to
achieve a 95 percent vehicle recovery rate and to reduce
our use of various Substances of Concern.
TARGET: GATHER NORTH AMERICAN BASELINE
DATA FOR SELECTED SUBSTANCES OF CONCERN
Following last year’s Substances of Concern content
analysis of the 2002 Camry, Toyota recently completed a
similar study on the 2004 Solara Coupe. Both analyses
will help us reduce use of Substances of Concern in the
future design of our North American vehicles.
TARGET: DEVELOP FUTURE NORTH
AMERICAN SOC STRATEGY
In accordance with the Toyota Recycle Vision, Toyota
materials, design and production engineers in North
America, Japan and Europe are establishing global
standards for the reduction of Substances of Concern in
all Toyota vehicles. In addition, the Vision’s aggressive
goals for nearly eliminating four key Substances of
Concern in various global regions will positively impact
products introduced to the North American market.
In 2002, we set targets, specific to our North American
vehicles, for eliminating, replacing or reducing use of
critical Substances of Concern, including arsenic,
hexavalent chrome, cadmium, mercury and lead. We
successfully reduced use of Substances of Concern in the
2004 Solara and 2004 Sienna, compared with the previous
generation vehicle. For example, we greatly reduced use of
lead in the Solara by using a lead-free radiator and heater
core, glass-black coating. Additionally we used lead-free
body electro-coat on both the Solara and Sienna.
GOAL: DEVELOP RECYCLING DESIGNS
AND PROMOTE EXPANDED USE OF
RECYCLED MATERIALS
The recyclability of an end-of-life vehicle depends on two
key factors: the economics of handling the end-of-life
vehicle and the initial design of the vehicle. The Toyota
Recycle Vision encourages enhanced recyclable designs
and promotes increased use of renewable resources and
recycled materials.
TARGET: INCORPORATE MATERIAL AND
DESIGN STRATEGIES FOR INCREASED
VEHICLE RECYCLABILIT Y
Below are three recent North American activities which
support our efforts toward reaching a 95 percent vehiclerecovery rate by FY2015.
• Development of recyclable designs for vehicles —
We replaced the Polyvinyl Chloride instrument panel
cover used in the in the 2003 Solara Coupe and 2003
Sienna minivan, with durable thermoplastic urethane
in the North American designed and built 2004 models.
• Use of renewable resources — We expanded our use
of kenaf, a natural material, in the composition of
door-trim components. We are also evaluating the
use of kenaf and a proprietary eco-plastic in future
North American-designed vehicles.
• Expanded utilization of used parts (re-manufacturing
parts for vehicle service applications) – In North America,
Toyota has targets to consistently expand our existing
remanufactured product lines and to develop additional
product lines. During this reporting period, we added
170 additional remanufactured applications to our
existing product lines.
Main: (left to right) Materials Engineers Linh Thompson, Faye Zaski and Janine Bond from the Toyota Technical Center, Ann Arbor, Michigan, display
an instrument panel, used in the 2004 Solara coupe. The new panel employs a thermoplastic urethane outer skin replacing the Polyvinyl
Chloride skin used on the previous generation Solara to address concerns about potential environmental impact of PVC. The
new Thermal Plastic Urethane material is also used on the TTC-designed 2004 Sienna minivan instrument panel.
E NVIRONMENTAL R EPORT 2003
page fifty-one
S TAKE H OLDERS
“By balancing our social and economic initiatives,
. . . Toyota hopes to contribute to the realization of
a sustainable society.”
— Fujio Cho,
PARTNERSHIPS
PRESIDENT, TOYOTA MOTOR CORPORATION
Toyota believes a great car company should not
only make and sell quality vehicles, but also be a powerful
engine for positive change. That’s why we continuously
challenge ourselves to find ways to reduce the environmental
impact of our operations and products. And why we partner
with cultural, civic, educational and environmental
organizations to support programs that help make
our world a better place.
In North America, Toyota supports a range of leading
community associations and activities. Each year we
invest millions of dollars in projects that enrich the
communities where we do business. We make additional
investments through our foundations: The Toyota U.S.A.
Foundation provides one-time grants to pioneering K-12
mathematics and science programs; and The Toyota Canada
Foundation supports scholarships as well as Earth Day
Canada and Evergreen initiatives. Visit www.toyota.com
or www.toyota.ca to learn more.
Here are some highlights of our activities specifically
related to the environment:
EARTH DAY
On Earth Day, April 22, 2003, Toyota held an ECO Fair in
Torrance, California, to raise employee awareness of our
latest environmental programs. The fair featured exhibits
by eight departments at Toyota on their environmental
efforts, as well as by our environmental partners, including
West Basin Water District, Audubon, Heal the Bay and
the Marine Mammal Care Center. Approximately fifty
local students from North High School in Torrance were
also invited to spend Earth Day at Toyota. They participated
in the ECO Fair, attended a workshop on hydrogen and
hybrid vehicles, toured our hydrogen fueling station and
witnessed the grand opening of the South Campus buildings.
We also sponsor the annual Race to Stop Global Warming,
a series of races and walks across America, beginning on
Earth Day. Throughout the year about 10,000 participants
take part in this grassroots movement to stop global
warming, administered by Green House Network.
Other 2003 Toyota Earth Day events around the
country included:
• Donation of Prius sedans to six New England
public television station auctions;
• Title sponsorship of an Earth Day Festival in
Nashville, Tennessee;
• Prius “Ride and Drives” at the Florida State
Capitol building.
As a principal sponsor of Earth Day Canada, Toyota
helped plan a tree planting festival in Toronto, Ontario,
and a downtown street clean-up in Montreal, Quebec.
Also in Canada, we launched the Toyota Earth Day
Scholarship Program which awards $5,000 to 10
graduating high school students entering colleges or
universities who have achieved academic excellence in
their secondary school studies and who have distinguished
themselves in environmental community service.
ENVIRONMENTAL PARTNERSHIPS
WITH STAKEHOLDERS
No single company can solve complex global issues on
its own. But we can make progress by partnering with
government and non-profit organizations, schools,
universities and other enterprises to support programs
that help make our communities and our world cleaner,
healthier and more livable. The following are a sampling
of some of these partnerships:
Main: On Arbor Day in Nebraska City, Nebraska, Emily Pfeifer learns about the importance of trees thanks to the
National Arbor Day Foundation, supported by Toyota.
Inset: Lied Lodge and Conference Center, on the Arbor Day Farm, Nebraska City, Nebraska. The center, created with
recycled materials, offers educational programs. (Visit www.liedlodge.org for more information.)
TOYOTA N ORTH A MERICA E NVIRONMENTAL R EPORT 2002
page fifty-three
S TAKE H OLDERS
“By balancing our social and economic initiatives,
. . . Toyota hopes to contribute to the realization of
a sustainable society.”
— Fujio Cho,
PARTNERSHIPS
PRESIDENT, TOYOTA MOTOR CORPORATION
Toyota believes a great car company should not
only make and sell quality vehicles, but also be a powerful
engine for positive change. That’s why we continuously
challenge ourselves to find ways to reduce the environmental
impact of our operations and products. And why we partner
with cultural, civic, educational and environmental
organizations to support programs that help make
our world a better place.
In North America, Toyota supports a range of leading
community associations and activities. Each year we
invest millions of dollars in projects that enrich the
communities where we do business. We make additional
investments through our foundations: The Toyota U.S.A.
Foundation provides one-time grants to pioneering K-12
mathematics and science programs; and The Toyota Canada
Foundation supports scholarships as well as Earth Day
Canada and Evergreen initiatives. Visit www.toyota.com
or www.toyota.ca to learn more.
Here are some highlights of our activities specifically
related to the environment:
EARTH DAY
On Earth Day, April 22, 2003, Toyota held an ECO Fair in
Torrance, California, to raise employee awareness of our
latest environmental programs. The fair featured exhibits
by eight departments at Toyota on their environmental
efforts, as well as by our environmental partners, including
West Basin Water District, Audubon, Heal the Bay and
the Marine Mammal Care Center. Approximately fifty
local students from North High School in Torrance were
also invited to spend Earth Day at Toyota. They participated
in the ECO Fair, attended a workshop on hydrogen and
hybrid vehicles, toured our hydrogen fueling station and
witnessed the grand opening of the South Campus buildings.
We also sponsor the annual Race to Stop Global Warming,
a series of races and walks across America, beginning on
Earth Day. Throughout the year about 10,000 participants
take part in this grassroots movement to stop global
warming, administered by Green House Network.
Other 2003 Toyota Earth Day events around the
country included:
• Donation of Prius sedans to six New England
public television station auctions;
• Title sponsorship of an Earth Day Festival in
Nashville, Tennessee;
• Prius “Ride and Drives” at the Florida State
Capitol building.
As a principal sponsor of Earth Day Canada, Toyota
helped plan a tree planting festival in Toronto, Ontario,
and a downtown street clean-up in Montreal, Quebec.
Also in Canada, we launched the Toyota Earth Day
Scholarship Program which awards $5,000 to 10
graduating high school students entering colleges or
universities who have achieved academic excellence in
their secondary school studies and who have distinguished
themselves in environmental community service.
ENVIRONMENTAL PARTNERSHIPS
WITH STAKEHOLDERS
No single company can solve complex global issues on
its own. But we can make progress by partnering with
government and non-profit organizations, schools,
universities and other enterprises to support programs
that help make our communities and our world cleaner,
healthier and more livable. The following are a sampling
of some of these partnerships:
Main: On Arbor Day in Nebraska City, Nebraska, Emily Pfeifer learns about the importance of trees thanks to the
National Arbor Day Foundation, supported by Toyota.
Inset: Lied Lodge and Conference Center, on the Arbor Day Farm, Nebraska City, Nebraska. The center, created with
recycled materials, offers educational programs. (Visit www.liedlodge.org for more information.)
TOYOTA N ORTH A MERICA E NVIRONMENTAL R EPORT 2002
page fifty-three
S TAKE H OLDERS
Team members from New United Motor Manufacturing, Inc., Fremont, California, help a local wildlife organization
and community volunteers create a habitat on the Hayward Regional Shoreline for the Least Tern, an endangered bird.
CANADIAN ENVIRONMENTAL AWARDS
In September, Toyota sponsored the first-ever
Canadian Environmental Awards, presented in
Hull, Quebec. The awards, developed by Canadian
Geographic Enterprises and the Canadian government, recognize individuals and groups who
protect, restore and preserve Canada’s environment.
As part of these awards, Toyota also sponsors
junior and senior winners of The Green Team
Challenge, recognizing outstanding school-and
community-based projects that demonstrate the
role of youth as environmental stewards.
INDUSTRY PARTNERSHIPS
We value cooperation with other companies in
developing technologies that will benefit the
environment. For example:
• Exxon-Mobil, to develop more efficient internal
combustion engines, hybrids and fuels for lower
emission vehicles;
• General Motors, to jointly develop alternative
propulsion methods and hybrid technologies;
• Nissan, to supply state-of-the-art hybrid system
components and discuss future joint development.
NON-PROFIT ORGANIZATIONS
AUDUBON
Toyota’s $2 million contribution to Audubon
established an Endowment Fund for Environmental
Education for the organization’s first urban
education centers in New York and Los Angeles.
The center in New York’s Prospect Park in Brooklyn,
provides New York City children and their
families with hands-on nature and education
experiences. In Los Angeles, the Debs Park urban
center is scheduled to open in the fall of 2003.
page fifty-four
CCAR-GREENLINK
Provides information about environmental
regulatory issues and waste stream management
to dealerships.
EVERGREEN
Evergreen is a national, non-profit environmental
organization whose mission is to bring communities
and nature together. In 2000, we pledged CAN$1.8
million over three years to help Evergreen establish
the Toyota Evergreen Learning Grounds program
in Canada, and recently extended our commitment
for three more years.
In 2002, we distributed CAN$100,000 in grants
to help 87 schools purchase native trees, shrubs
and plants to turn asphalt and turf school
grounds into inviting natural play and learning
spaces. Our dealerships participated in check
presentations and community planting events
at local schools.
FRIENDS OF THE ROUGE WATERSHED
Toyota has contributed CAN$75,000 and a T100
4X4 pickup truck to the Friends of the Rouge
Watershed, a community-based conservation
group in Scarborough, Ontario. Each June,
Toyota associates volunteer to plant wild flowers
and install raptor posts (towers used as hunting
perches by birds of prey) at the Beare Road Landfill
— a former dumpsite that the conservation group
is rehabilitating.
THE NATIONAL ARBOR DAY FOUNDATION
Toyota and The National Arbor Day Foundation
partner on projects focusing on educating youth
and communities about the importance of trees,
Arbor Day and environmental stewardship.
TOYOTA N ORTH A MERICA
We sponsor the Foundation’s annual Arbor Day
National Poster Contest, reaching 1,750,000 fifth
graders, in 47 states. Under the theme, “Trees are
Terrific from Acorn to Oak!,” hands-on activities
helped demonstrate the unique characteristics
that differentiate oaks from other trees.
We also support an Arbor Day Video, “Grow
Your Own Tree” classroom activity kits and
a “Tree Planting Resource Kit for Volunteers.”
NATIONAL ENVIRONMENTAL AND EDUCATION
TRAINING FOUNDATION
In partnership with the National Environmental
and Education Training Foundation, Toyota has
been title sponsor of National Public Lands Day
for the past five years.
In 2003, National Public Lands Day brought
together 80,000 volunteers from across the country
to improve the country’s largest natural resource
— its public lands. Volunteer efforts combined with
contributions of food, tools and equipment
resulted in more than $10 million of improvements.
Nearly 2,200 Toyota employees, their families
and friends turned out to “lend their hands
to America’s lands” at 25 sites where many
of our offices, dealerships, parts centers and
manufacturing plants are located.
NATIONAL SCIENCE TEACHERS ASSOCIATION
In partnership with the National Science Teachers
Association, the Toyota TAPESTRY program
provides 50 annual grants of up to $10,000 each
and 20 mini-grants of up to $2,500 each to K-12
science teachers nationwide for innovative classroom
environmental and physical science, as well as
literacy and science education projects.
E NVIRONMENTAL R EPORT 2003
THE WORLD WILDLIFE FUND
The World Wildlife Fund, Toyota and the University
of Colorado jointly developed the Galapagos
Sustainable Energy Initiative. The ultimate goal
is to create a renewable, non-polluting energy
supply for the Galapagos Islands through a series
of projects and investments in the islands’ power
supply, transportation, fishing and tourism sectors.
ADDITIONAL LOCAL PLANT INITIATIVES
Across North America, Toyota’s manufacturing facility
employees help improve their local communities. A few
examples are below:
Bodine Aluminum, Inc. — In Troy and St. Louis,
Missouri, Bodine volunteers participated in
National Public Lands Day, restoring native
prairie grass at a local state park.
New United Motor Manufacturing, Inc.
(NUMMI) — NUMMI volunteers took part in
National Public Lands Day, creating a habitat
for endangered shorebirds at the Hayward
Regional Shoreline; participated in Audubon’s
San Francisco Bay Restoration Project; and
helped a local high school to establish a recycling
program (see sidebar on page 56).
TABC, Inc. — In Long Beach, California, TABC
volunteers participated in National Public Lands
Day and other community projects.
Toyota Motor Manufacturing Canada, Inc.
(TMMC) — In Cambridge, Ontario, TMMC hosted
an annual open house for Waterloo Region
educators. Principals and teachers spent a day
learning about its water recycling system, attending
a Prius demonstration and taking an environmentally focused plant tour. In support of School
Earth Week, TMMC also donated “kindness to
the earth”-themed merchandise to local schools.
page fifty-five
S TAKE H OLDERS
Team members from New United Motor Manufacturing, Inc., Fremont, California, help a local wildlife organization
and community volunteers create a habitat on the Hayward Regional Shoreline for the Least Tern, an endangered bird.
CANADIAN ENVIRONMENTAL AWARDS
In September, Toyota sponsored the first-ever
Canadian Environmental Awards, presented in
Hull, Quebec. The awards, developed by Canadian
Geographic Enterprises and the Canadian government, recognize individuals and groups who
protect, restore and preserve Canada’s environment.
As part of these awards, Toyota also sponsors
junior and senior winners of The Green Team
Challenge, recognizing outstanding school-and
community-based projects that demonstrate the
role of youth as environmental stewards.
INDUSTRY PARTNERSHIPS
We value cooperation with other companies in
developing technologies that will benefit the
environment. For example:
• Exxon-Mobil, to develop more efficient internal
combustion engines, hybrids and fuels for lower
emission vehicles;
• General Motors, to jointly develop alternative
propulsion methods and hybrid technologies;
• Nissan, to supply state-of-the-art hybrid system
components and discuss future joint development.
NON-PROFIT ORGANIZATIONS
AUDUBON
Toyota’s $2 million contribution to Audubon
established an Endowment Fund for Environmental
Education for the organization’s first urban
education centers in New York and Los Angeles.
The center in New York’s Prospect Park in Brooklyn,
provides New York City children and their
families with hands-on nature and education
experiences. In Los Angeles, the Debs Park urban
center is scheduled to open in the fall of 2003.
page fifty-four
CCAR-GREENLINK
Provides information about environmental
regulatory issues and waste stream management
to dealerships.
EVERGREEN
Evergreen is a national, non-profit environmental
organization whose mission is to bring communities
and nature together. In 2000, we pledged CAN$1.8
million over three years to help Evergreen establish
the Toyota Evergreen Learning Grounds program
in Canada, and recently extended our commitment
for three more years.
In 2002, we distributed CAN$100,000 in grants
to help 87 schools purchase native trees, shrubs
and plants to turn asphalt and turf school
grounds into inviting natural play and learning
spaces. Our dealerships participated in check
presentations and community planting events
at local schools.
FRIENDS OF THE ROUGE WATERSHED
Toyota has contributed CAN$75,000 and a T100
4X4 pickup truck to the Friends of the Rouge
Watershed, a community-based conservation
group in Scarborough, Ontario. Each June,
Toyota associates volunteer to plant wild flowers
and install raptor posts (towers used as hunting
perches by birds of prey) at the Beare Road Landfill
— a former dumpsite that the conservation group
is rehabilitating.
THE NATIONAL ARBOR DAY FOUNDATION
Toyota and The National Arbor Day Foundation
partner on projects focusing on educating youth
and communities about the importance of trees,
Arbor Day and environmental stewardship.
TOYOTA N ORTH A MERICA
We sponsor the Foundation’s annual Arbor Day
National Poster Contest, reaching 1,750,000 fifth
graders, in 47 states. Under the theme, “Trees are
Terrific from Acorn to Oak!,” hands-on activities
helped demonstrate the unique characteristics
that differentiate oaks from other trees.
We also support an Arbor Day Video, “Grow
Your Own Tree” classroom activity kits and
a “Tree Planting Resource Kit for Volunteers.”
NATIONAL ENVIRONMENTAL AND EDUCATION
TRAINING FOUNDATION
In partnership with the National Environmental
and Education Training Foundation, Toyota has
been title sponsor of National Public Lands Day
for the past five years.
In 2003, National Public Lands Day brought
together 80,000 volunteers from across the country
to improve the country’s largest natural resource
— its public lands. Volunteer efforts combined with
contributions of food, tools and equipment
resulted in more than $10 million of improvements.
Nearly 2,200 Toyota employees, their families
and friends turned out to “lend their hands
to America’s lands” at 25 sites where many
of our offices, dealerships, parts centers and
manufacturing plants are located.
NATIONAL SCIENCE TEACHERS ASSOCIATION
In partnership with the National Science Teachers
Association, the Toyota TAPESTRY program
provides 50 annual grants of up to $10,000 each
and 20 mini-grants of up to $2,500 each to K-12
science teachers nationwide for innovative classroom
environmental and physical science, as well as
literacy and science education projects.
E NVIRONMENTAL R EPORT 2003
THE WORLD WILDLIFE FUND
The World Wildlife Fund, Toyota and the University
of Colorado jointly developed the Galapagos
Sustainable Energy Initiative. The ultimate goal
is to create a renewable, non-polluting energy
supply for the Galapagos Islands through a series
of projects and investments in the islands’ power
supply, transportation, fishing and tourism sectors.
ADDITIONAL LOCAL PLANT INITIATIVES
Across North America, Toyota’s manufacturing facility
employees help improve their local communities. A few
examples are below:
Bodine Aluminum, Inc. — In Troy and St. Louis,
Missouri, Bodine volunteers participated in
National Public Lands Day, restoring native
prairie grass at a local state park.
New United Motor Manufacturing, Inc.
(NUMMI) — NUMMI volunteers took part in
National Public Lands Day, creating a habitat
for endangered shorebirds at the Hayward
Regional Shoreline; participated in Audubon’s
San Francisco Bay Restoration Project; and
helped a local high school to establish a recycling
program (see sidebar on page 56).
TABC, Inc. — In Long Beach, California, TABC
volunteers participated in National Public Lands
Day and other community projects.
Toyota Motor Manufacturing Canada, Inc.
(TMMC) — In Cambridge, Ontario, TMMC hosted
an annual open house for Waterloo Region
educators. Principals and teachers spent a day
learning about its water recycling system, attending
a Prius demonstration and taking an environmentally focused plant tour. In support of School
Earth Week, TMMC also donated “kindness to
the earth”-themed merchandise to local schools.
page fifty-five
S TAKE H OLDERS
L IST OF A CRONYMS
NOx
Nitrogen Oxides
AAM
Alliance of Automobile Manufacturers
NPRI
National Pollutant Release Inventory (Canada)
As
Arsenic (a Substance of Concern)
NWF
National Wildlife Federation
AT-PZEV
Advanced Technology Partial Zero Emission Vehicle
Pb
Lead (a Substance of Concern)
CAFE
Corporate Average Fuel Economy
PDF
Portable Document Format
CAFC
Corporate Average Fuel Consumption
PZEV
Partial Zero Emission Vehicle
CARB
California Air Resources Board
SOC
Substance of Concern
CCAR®
Coordinating Committee for Automotive Repair
SULEV
Super Ultra Low Emission Vehicle
NUMMI connected Alter with local recycling organizations, helped her write successful grant proposals
and provided promotional ideas for the program. Alter helped NUMMI develop ways to reduce and
recycle solid wastes from the manufacturing process. Alter’s recycling program was a success.
James Logan High, a school of almost 4,300 students, was able to reduce its waste output by 40
percent in the program’s first three weeks.
Cd
Cadmium (a Substance of Concern)
TRI
Toxic Release Inventory (United States EPA)
Cd
Drag Coefficient
ULEV
Ultra Low Emission Vehicle
CNG
Compressed Natural Gas
VOC
Volatile Organic Compound
CO
Carbon Monoxide
ZEV
Zero Emission Vehicle
CO2
Carbon Dioxide
ZEVNET
Zero Emission Vehicle Network
The partnership continues. At NUMMI, Alter is developing recycling projects around the plant. NUMMI
is also helping Alter create lessons tying recycling processes into the high school curriculum. The
plant continues to help her write grants and create additional waste reduction goals for the school.
Cr+6
Hexavalent Chrome (a Substance of Concern)
T O YO TA - S P E C I F I C A C R O N Y M S
ED
Electro Deposition
CAPTIN
Canadian Autoparts Toyota, Inc.
EMS
Environmental Management System
EAN
Environmental Assistance Network
EPA
United States Environmental Protection Agency
EDS
Environmental Data Sheet
EV
Electric Vehicle
HSD
Hybrid Synergy Drive
FCHV
Fuel Cell Hybrid Vehicle
NAEC
North American Environmental Committee
FY
Fiscal Year
NAPM
North American Planning Meeting
GHG
Greenhouse Gas
NUMMI
New United Motor Manufacturing, Inc.
GJ
Gigajoules
PDC
Parts Distribution Center
NUMMI PARTNERS WITH HIGH SCHOOL ON RECYCLING PROGRAM
During the summer of 2002, the Environmental Affairs Division of New United Motor Manufacturing,
Inc. (NUMMI), Fremont, California, helped chemistry teacher Mindy Alter develop a sustainable recycling
program at James Logan High School, in nearby Union City. Alter came to NUMMI through the
Industry Initiatives for Science and Math Education, a Bay Area non-profit organization that places
teachers in summer jobs at local companies.
Toyota Motor Manufacturing, Indiana, Inc.
(TMMI) — In Princeton, Indiana, TMMI
volunteers took part in environmental activities
at Earth Aware Camp at Camp Carson, the
Butterfly Retreat at North Woods Nature Trail
and River Sweep, a litter clean-up project along
the Ohio River.
Toyota Motor Manufacturing, Kentucky, Inc.
(TMMK) — In Georgetown, Kentucky, TMMK
sponsored the Fall Haul Roundup of household
hazardous waste for the eighth consecutive year.
The program has enabled more than 160,000
pounds of waste collection since 1992. TMMK also
supported the Living Stream Exhibit at the
Kentucky Fish and Wildlife Center, Frankfort,
Kentucky, and the World Around Us Exhibit at
the Louisville Science Center. TMMK volunteers
also took part in National Public Lands Day and
other community clean-up projects.
ENVIRONMENTAL AWARDS
Over the years, Toyota’s efforts to reduce the environmental
impact of our products, processes and facilities have been
recognized. Here are some of our most recent awards:
Prius: “Clean Air Choice of Earth Day Canada,”
2002, from Earth Day Canada;
“President’s Circle Award 2003,” from the
American Lung Association; Gold LEED™
(Leadership in Energy and Environmental
Design) Award, 2003, from the United States
Green Building Council for Toyota’s new South
Campus buildings, Torrance, California;
“Top 10 Most Technically Sophisticated Cars for
2003” (Toyota Prius), from the IEEE Spectrum,
official publication of the Institute of Electrical
and Electronic Engineers, Inc., the world’s largest
technical professional society;
“California Governor’s Environmental and economic
Leadership” award — Sustainable Facilities
Category, 2003, administered by the California
Environmental Protection Agency and Resources
Agency, in partnership with the state and
Consumer Services Agency, in partnership with the
state and Consumer Services Agency, for Toyota’s
South Campus buildings, Torrance, California;
GPS
Global Positioning System
REF
Real Estate and Facilities Department
HAP
Hazardous Air Pollutant
TCI
Toyota Canada Inc.
HAZMAT
Hazardous Materials (designated as
“Dangerous Goods” in Canada)
TFS
Toyota Financial Services
TLS
Toyota Logistical Services
THS
Toyota Hybrid System
“Green Power Leadership award”, 2003, from the
U.S. EPA, the U.S. Department of Energy, and the
Center for Resource Solutions for on-site generation
of renewable electricity at Toyota’s new South
Campus Buildings, Torrance, California;
“Most Improved Permittee” Award, 2003, from
the Port of Long Beach to Toyota’s Vehicle
Distribution Center in Long Beach, California,
for participation in the port’s Master Storm
Water Program;
“Waste Reduction Award,” 2003, from the California
Integrated Waste Management Board, for programs at
New United Motor Manufacturing, Inc. and Toyota’s
North American Parts Center;
“Most Fuel-Efficient Production Sedan, (Toyota
Prius) from The Northeast Sustainable Energy
Association;
“Emerald Award,” 2000, 2001 and 2002, from
Broward County, Florida, presented to JM
Family Enterprises (Toyota’s private distributor
for the southeast United States).
HC
Hydrocarbon
HCFC
Hydrochlorofluorocarbons
HEV
Hybrid Electric Vehicle
Hg
Mercury (a Substance of Concern)
ISO
International Organization for Standardization
Kg
Kilogram
LEED™
Leadership in Energy and Environmental Design
LEV
Low Emission Vehicle
LEVII
California’s Second Generation Low Emission
Vehicle Program
MPG
Miles per Gallon
MY
Model Year
Ni-MH
Nickel-Metal Hydride
NMOG
Non-Methane Organic Gas
NOV
Notice of Violation
TMA
Toyota Motor North America, Inc.
TMC
Toyota Motor Corporation
TMMAL
Toyota Motor Manufacturing, Alabama, Inc.
TMMC
Toyota Motor Manufacturing, Canada, Inc.
TMMI
Toyota Motor Manufacturing, Indiana, Inc.
TMMK
Toyota Motor Manufacturing, Kentucky, Inc.
TMMNA
Toyota Motor Manufacturing, North America, Inc.
TMMWV
Toyota Motor Manufacturing, West Virginia, Inc.
TMS
Toyota Motor Sales, U.S.A., Inc.
TSOP
Toyota Super Olefin Polymer
TTC
Toyota Technical Center, U.S.A., Inc.
VDC
Vehicle Distribution Center
Please refer to the following Web sites for supplementary information:
This North American Environmental Report
General Toyota environmental information
Prius information
Toyota environmental updates
Toyota environmental technology
Toyota manufacturing facilities and information
Toyota Supplier Environmental Guidelines
Toyota in the community
Toyota environmental awards
Toyota global operations (Japan)
www.toyota.com/about/environment and www.toyota.ca/environment
www.toyota.com and/or www.toyota.ca
www.toyota.com/vehicles/2004/prius/
www.priusview.com/
www.toyota.com/about/environment/news/index.html
www.toyota.com/about/environment/technology/index.html
www.toyota.com/about/environment/manufacturing/index.html
www.toyota.com/about/environment/manufacturing/supplier.html
www.toyota.com/about/community/index.html
www.toyota.com/about/environment/awards/index.html
www.toyota.jp
For additional information or comments, please contact: TOYOTA MOTOR NORTH AMERICA, INC. • Environmental Report Manager • 1850 M Street NW, Suite 600
Washington, DC 20036 • Email: environmentalreport@tma.toyota.com
page fifty-six
TOYOTA N ORTH A MERICA
E NVIRONMENTAL R EPORT 2003
page fifty-seven
S TAKE H OLDERS
L IST OF A CRONYMS
NOx
Nitrogen Oxides
AAM
Alliance of Automobile Manufacturers
NPRI
National Pollutant Release Inventory (Canada)
As
Arsenic (a Substance of Concern)
NWF
National Wildlife Federation
AT-PZEV
Advanced Technology Partial Zero Emission Vehicle
Pb
Lead (a Substance of Concern)
CAFE
Corporate Average Fuel Economy
PDF
Portable Document Format
CAFC
Corporate Average Fuel Consumption
PZEV
Partial Zero Emission Vehicle
CARB
California Air Resources Board
SOC
Substance of Concern
CCAR®
Coordinating Committee for Automotive Repair
SULEV
Super Ultra Low Emission Vehicle
NUMMI connected Alter with local recycling organizations, helped her write successful grant proposals
and provided promotional ideas for the program. Alter helped NUMMI develop ways to reduce and
recycle solid wastes from the manufacturing process. Alter’s recycling program was a success.
James Logan High, a school of almost 4,300 students, was able to reduce its waste output by 40
percent in the program’s first three weeks.
Cd
Cadmium (a Substance of Concern)
TRI
Toxic Release Inventory (United States EPA)
Cd
Drag Coefficient
ULEV
Ultra Low Emission Vehicle
CNG
Compressed Natural Gas
VOC
Volatile Organic Compound
CO
Carbon Monoxide
ZEV
Zero Emission Vehicle
CO2
Carbon Dioxide
ZEVNET
Zero Emission Vehicle Network
The partnership continues. At NUMMI, Alter is developing recycling projects around the plant. NUMMI
is also helping Alter create lessons tying recycling processes into the high school curriculum. The
plant continues to help her write grants and create additional waste reduction goals for the school.
Cr+6
Hexavalent Chrome (a Substance of Concern)
T O YO TA - S P E C I F I C A C R O N Y M S
ED
Electro Deposition
CAPTIN
Canadian Autoparts Toyota, Inc.
EMS
Environmental Management System
EAN
Environmental Assistance Network
EPA
United States Environmental Protection Agency
EDS
Environmental Data Sheet
EV
Electric Vehicle
HSD
Hybrid Synergy Drive
FCHV
Fuel Cell Hybrid Vehicle
NAEC
North American Environmental Committee
FY
Fiscal Year
NAPM
North American Planning Meeting
GHG
Greenhouse Gas
NUMMI
New United Motor Manufacturing, Inc.
GJ
Gigajoules
PDC
Parts Distribution Center
NUMMI PARTNERS WITH HIGH SCHOOL ON RECYCLING PROGRAM
During the summer of 2002, the Environmental Affairs Division of New United Motor Manufacturing,
Inc. (NUMMI), Fremont, California, helped chemistry teacher Mindy Alter develop a sustainable recycling
program at James Logan High School, in nearby Union City. Alter came to NUMMI through the
Industry Initiatives for Science and Math Education, a Bay Area non-profit organization that places
teachers in summer jobs at local companies.
Toyota Motor Manufacturing, Indiana, Inc.
(TMMI) — In Princeton, Indiana, TMMI
volunteers took part in environmental activities
at Earth Aware Camp at Camp Carson, the
Butterfly Retreat at North Woods Nature Trail
and River Sweep, a litter clean-up project along
the Ohio River.
Toyota Motor Manufacturing, Kentucky, Inc.
(TMMK) — In Georgetown, Kentucky, TMMK
sponsored the Fall Haul Roundup of household
hazardous waste for the eighth consecutive year.
The program has enabled more than 160,000
pounds of waste collection since 1992. TMMK also
supported the Living Stream Exhibit at the
Kentucky Fish and Wildlife Center, Frankfort,
Kentucky, and the World Around Us Exhibit at
the Louisville Science Center. TMMK volunteers
also took part in National Public Lands Day and
other community clean-up projects.
ENVIRONMENTAL AWARDS
Over the years, Toyota’s efforts to reduce the environmental
impact of our products, processes and facilities have been
recognized. Here are some of our most recent awards:
Prius: “Clean Air Choice of Earth Day Canada,”
2002, from Earth Day Canada;
“President’s Circle Award 2003,” from the
American Lung Association; Gold LEED™
(Leadership in Energy and Environmental
Design) Award, 2003, from the United States
Green Building Council for Toyota’s new South
Campus buildings, Torrance, California;
“Top 10 Most Technically Sophisticated Cars for
2003” (Toyota Prius), from the IEEE Spectrum,
official publication of the Institute of Electrical
and Electronic Engineers, Inc., the world’s largest
technical professional society;
“California Governor’s Environmental and economic
Leadership” award — Sustainable Facilities
Category, 2003, administered by the California
Environmental Protection Agency and Resources
Agency, in partnership with the state and
Consumer Services Agency, in partnership with the
state and Consumer Services Agency, for Toyota’s
South Campus buildings, Torrance, California;
GPS
Global Positioning System
REF
Real Estate and Facilities Department
HAP
Hazardous Air Pollutant
TCI
Toyota Canada Inc.
HAZMAT
Hazardous Materials (designated as
“Dangerous Goods” in Canada)
TFS
Toyota Financial Services
TLS
Toyota Logistical Services
THS
Toyota Hybrid System
“Green Power Leadership award”, 2003, from the
U.S. EPA, the U.S. Department of Energy, and the
Center for Resource Solutions for on-site generation
of renewable electricity at Toyota’s new South
Campus Buildings, Torrance, California;
“Most Improved Permittee” Award, 2003, from
the Port of Long Beach to Toyota’s Vehicle
Distribution Center in Long Beach, California,
for participation in the port’s Master Storm
Water Program;
“Waste Reduction Award,” 2003, from the California
Integrated Waste Management Board, for programs at
New United Motor Manufacturing, Inc. and Toyota’s
North American Parts Center;
“Most Fuel-Efficient Production Sedan, (Toyota
Prius) from The Northeast Sustainable Energy
Association;
“Emerald Award,” 2000, 2001 and 2002, from
Broward County, Florida, presented to JM
Family Enterprises (Toyota’s private distributor
for the southeast United States).
HC
Hydrocarbon
HCFC
Hydrochlorofluorocarbons
HEV
Hybrid Electric Vehicle
Hg
Mercury (a Substance of Concern)
ISO
International Organization for Standardization
Kg
Kilogram
LEED™
Leadership in Energy and Environmental Design
LEV
Low Emission Vehicle
LEVII
California’s Second Generation Low Emission
Vehicle Program
MPG
Miles per Gallon
MY
Model Year
Ni-MH
Nickel-Metal Hydride
NMOG
Non-Methane Organic Gas
NOV
Notice of Violation
TMA
Toyota Motor North America, Inc.
TMC
Toyota Motor Corporation
TMMAL
Toyota Motor Manufacturing, Alabama, Inc.
TMMC
Toyota Motor Manufacturing, Canada, Inc.
TMMI
Toyota Motor Manufacturing, Indiana, Inc.
TMMK
Toyota Motor Manufacturing, Kentucky, Inc.
TMMNA
Toyota Motor Manufacturing, North America, Inc.
TMMWV
Toyota Motor Manufacturing, West Virginia, Inc.
TMS
Toyota Motor Sales, U.S.A., Inc.
TSOP
Toyota Super Olefin Polymer
TTC
Toyota Technical Center, U.S.A., Inc.
VDC
Vehicle Distribution Center
Please refer to the following Web sites for supplementary information:
This North American Environmental Report
General Toyota environmental information
Prius information
Toyota environmental updates
Toyota environmental technology
Toyota manufacturing facilities and information
Toyota Supplier Environmental Guidelines
Toyota in the community
Toyota environmental awards
Toyota global operations (Japan)
www.toyota.com/about/environment and www.toyota.ca/environment
www.toyota.com and/or www.toyota.ca
www.toyota.com/vehicles/2004/prius/
www.priusview.com/
www.toyota.com/about/environment/news/index.html
www.toyota.com/about/environment/technology/index.html
www.toyota.com/about/environment/manufacturing/index.html
www.toyota.com/about/environment/manufacturing/supplier.html
www.toyota.com/about/community/index.html
www.toyota.com/about/environment/awards/index.html
www.toyota.jp
For additional information or comments, please contact: TOYOTA MOTOR NORTH AMERICA, INC. • Environmental Report Manager • 1850 M Street NW, Suite 600
Washington, DC 20036 • Email: environmentalreport@tma.toyota.com
page fifty-six
TOYOTA N ORTH A MERICA
E NVIRONMENTAL R EPORT 2003
page fifty-seven
T OYOTA N ORTH A MERICA E NVIRONMENTAL R EPORT
T OYOTA
TOYOTA NORTH AMERICA
2003 ENVIRONMENTAL REPORT
Printed on recycled paper,
10 percent post-consumer waste.
Lead, cadmium, mercury
and hexavalent chromium
are not used in our
coating formulations.
©2003
00325-ENV03-NAER